Sentences with phrase «cash value portion of the policy»

You might be wondering if and when you have to pay income tax on the cash value portion of your policy.

The cash value portion of the policy is the engine that makes the policy work.

A great benefit of paying over a limited time is that you invest a greater amount in the cash value portion of the policy early on, meaning you earn higher returns over the length of coverage.

Like variable life, you can invest the cash value portion of the policy among the insurance company's portfolio of investments.

You can invest the cash value portion of the policy among the insurance company's portfolio of investments.

And, the cash that is in the cash value portion of the policy may be either borrowed or withdrawn by the policyholder for any need or reason.

The money that is inside the cash value portion of the policy is allowed to grow and compound on a tax - deferred basis, meaning that there is no tax on the gain until the time the funds are withdrawn.

It offers a guaranteed rate of return for the cash value portion of the policy as well as a level premium that will not change.

Premiums are often much higher than a term life insurance policy with the same amount of coverage because you're paying for an insurance policy as well as putting money into the cash value portion of the policy.

These all differ in how the cash value portion of the policy works.

The cash value portion of the policy is allowed to grow and compound over time on a tax deferred basis.

These types of policies can be a good life insurance solution for those whose children are now growth, as well as for business owners, and for those who wish to use the cash value portion of the policy to increase their overall retirement nest egg.

You might be wondering if and when you have to pay income tax on the cash value portion of your policy.

Within the cash value portion of the policy, funds are allowed to grow on a tax deferred basis — meaning that no taxes are due on the growth of these funds until they are withdrawn.

The funds that are within this cash value portion of the policy are allowed to grow and compound on a tax - deferred basis, meaning that no tax will be due on the gain of the funds unless or until they are withdrawn.

Premiums are often much higher than a term life insurance policy with the same amount of coverage because you're paying for an insurance policy as well as putting money into the cash value portion of the policy.

These all differ in how the cash value portion of the policy works.

You can invest the cash value portion of the policy among the insurance company's portfolio of investments.

Like variable life, you can invest the cash value portion of the policy among the insurance company's portfolio of investments.

If purchasing a permanent life insurance policy, the savings in the cash value portion of the policy can also be used for funding future goals such as college savings.

It also means that you can borrow or withdraw from the cash value portion of your policy whenever you like.

And, the cash that is in the cash value portion of the policy may be either borrowed or withdrawn by the policyholder for any need or reason.

The cash value portion of the policy pays interest based on the rate of a market index, such as the Standard & Poor 500.

The cash that is in the cash value portion of the policy is allowed to grow and compound on a tax - deferred basis.

For example, if the S&P 500 grows at a rate of 6 percent in a year, the cash value portion of your policy earns 6 percent interest.

The money that is inside the cash value portion of the policy is allowed to grow and compound on a tax - deferred basis, meaning that there is no tax on the gain until the time the funds are withdrawn.

Even though you might not need the death benefit, you may still want the cash value portion of the policy.

Variable Life — Cash value life insurance in which you manage the cash value portion of the policy by selecting variable investment options offered by the policy.

After that, the cash value portion of his policy will average a 1.5 % return per year for a whole life guaranteed cash value policy according to Consumer Reports.

Therefore, as time goes on, more of the premium will go towards funding the cash value portion of the policy.

While the premiums on permanent life insurance may be higher than those of a comparable term life policy, this is primarily due to the fact that some of the premium is going towards the cash value portion of the policy.

This excess amount of premium goes into the cash value portion of the policy.

This is because the policy holder — within certain guidelines — may choose how much of the premium will go towards the death benefit, and how much will go into the cash value portion of the policy.

The cash in the cash value portion of the policy is allowed to grow on a tax - deferred basis, meaning that there is no tax due on the gain unless or until the money is withdrawn.

The funds that are in the cash value portion of the policy are allowed to grow on a tax - deferred basis.

The return on the money in the cash value portion of the policy is based on the performance of an underlying market index, such as the S&P 500.

However, variable universal life policyholders assume the risk of the underlying investments within the cash value portion of the policy, and death benefit and total cash value can rise or fall over time.

Some whole life insurance policies will also offer the policy holder dividends, which can either be paid out as cash or be added into the cash value portion of the policy.

Increased consumer knowledge in the areas of life insurance and investing have resulted in demands to reshape the cash value portion of these policies.

This cash value portion of the policy allows the policy holder to build up savings over time in a tax advantaged manner.

Within certain limitations, the insured is allowed to allocate when and how much of the premium goes towards the insurance portion of the policy and the cash value portion of the policy.

Variable Universal Life Insurance — Variable universal life insurance is somewhat similar to regular universal life insurance, except that in this type of insurance product, the policyholder can invest the cash value portion of the policy into various types of investments.

Policyholders are allowed to either borrow or withdraw the funds that are in the cash value portion of their policies.

Unlike with a whole life insurance policy, UL plans will require that you more closely monitor the cash value portion of the policy.

How the cash value portion of your policy is managed is the basis for the major distinctions between types of permanent life insurance.

The cash that builds up in the cash value portion of the policy is allowed to do so on a tax - deferred basis.

The cash value portion of this policy offers a guaranteed 3 % interest rate, while the index interest is linked to the annual growth of the S&P 500 Index.

However, in this particular case, the policyholder will be allowed to invest the cash value portion of the policy into different investments.

In fact, a universal life policy holder can decide how much of their premium will go towards each of the death benefit and the cash value portions of their policy — and can move funds between the two components.

The cash value portion of the policy is the engine that makes the policy work.