Sentences with phrase «cash value to»

Variable universal life insurance policies have the cash value structure of variable life insurance, but you can use the cash value to pay premiums.

My question is should I surrender the policies and add the cash value to my IRA?

If you are interested in using the cash value to purchase another policy with a higher guaranteed death benefit... let me know and I'll run some numbers for you.

This will encourage the policy's cash value to grow at an accelerated rate.

Would I be better off using the cash value to pay the remaining premiums or pay them out of pocket.

The increasing death benefit option on universal life insurance works by building cash value in addition to the death benefit, instead of using the cash value to offset the payment of the death benefit claim.

PPA permits tax - free distribution of life insurance or annuity cash value to pay for long - term care (both beginning in 2010).

They might have taken out a Life insurance policy on you a long time ago and may be able to access the cash value to put towards a down payment.

# 3: You could use the cash value to buy an extended term policy.

Interest incurred on indebtedness has historically been deductible, (although the deduction of «personal» interest was largely eliminated in 1986), and in the 1950s a type of «leveraged insurance» transaction began being marketed that permitted an insurance owner to in effect deduct the cost of paying for insurance by (1) paying large premiums to create cash values, (2) «borrowing» against the cash value to in effect strip out the large premiums, and (3) paying deductible «interest» back to the insurer, which was in turn credited to the policy's cash value as tax - deferred earnings on the policy that could fund the insurer's legitimate charges against policy value for cost of insurance, etc..

Many people choose to pay the maximum premium possible for the first several years of coverage in order to build a large cash value, then use the cash value to pay premiums later on.

Universal Life and Variable Universal Life policies may allow 30 - 60 days for additional funding premiums to be paid if there is insufficient cash value to sustain the policy during the monthly calculation of expense charges and policy credits.

Withdrawals and loans reduce the death benefit and cash value, thereby diminishing the ability of the cash value to serve as a source of funding for cost of insurance charges, which increase as you age.

Various factors, such as the cost of insurance, dividend payouts, and changes in interest rates, can cause the cash value to fluctuate in a way that is not in accord with the policyholder's expectations.

Allowing the cash value to continue to accumulate until your passing, and bequeathing it to one or more beneficiaries if you do not need it for retirement expenses.

Policy premiums are adjustable as long as there is sufficient cash value to cover policy expenses.

Variable universal life is a variation of the flexible premium policy that allows for cash value to be allocated in equity accounts similar to mutual funds.

7 Withdrawals reduce the death benefit and cash value and thereby diminish the ability of the cash value to serve as a source of funding for cost of insurance charges, which increase as you age.

For many, building enough cash value to exceed their investment can take decades.

However, does not build cash value to the Insured.

This policy provides features that help in building cash value to grow as fast as possible.

For example, a policy owner could turn in the policy for its available cash value, or borrow against the cash value and still keep the policy in force, or temporarily use the cash value to pay the policy's monthly premiums.

You may be able to apply your cash value to premium payments, subject to approval, of course.

Policy owners also have the flexibility to transfer the cash value to a paid - up policy through a 1035 tax - free exchange.

If you are incapable of repaying your policy loan, your insurance company will use your cash value to settle the loan.

At this point your policy will begin to draw from the cash value to make up the difference.

However I wouldn't count on using cash value to pay premiums in the future, or use these policies as investments.

The premium payment made by the APL will come from your policy's cash value account, and will continue to do so for as long as there is sufficient cash value to keep it in force.

You can allow your cash value to work for you even more with a tax - free loan.

A guaranteed universal life, called guaranteed UL, ensures that your death benefit will not terminate if there is insufficient cash value to support the death benefit.

ACE stands for assured coverage endorsement and this is essentially a no lapse guarantee endorsement that states even though this is a cash value policy, even if there is zero cash value or not enough cash value to sustain the cost of insurance, the policy's premiums and death benefit will still stay level as long as you pay your premiums on time when they are due.

Basically, the policy will use the cash value to make the payments and continue doing so for as long as there is sufficient cash value to sustain the payments.

This allows many self - banking policies cash value to be accessed in just a short period of time, compared with many years on a typical whole life policy where the main perk is the death benefit.

Because ordinary universal life insurance must have cash value to stay in force, the guaranteed UL allows policies that would otherwise lapse to remain in force so that the beneficiary receives the death benefit that they are entitled to.

Utilizing an infinite banking strategy requires that you use your cash value to finance your purchases in the form of policy loans.

If you use part of the cash value to pay premiums, you could end up with no cash value.

And don't just transfer the entire cash value to an annuity under Section 1035 of the tax code.

It is normal for the cash value to be less than the total premiums paid for the first 10 years of the policy.

Also, you can borrow from the cash value to take care of other expenses.

Use your accumulated cash value to pay the future premiums (also referred as automatic premium loan).

Now my kids are grown and I cashed out most of the cash value to pay for their college.

There's no cash value to term life insurance.

This would prevent loss of the insurance protection as long as the policy has enough cash value to pay the premium.

However, Index Universal life insurance is an easier investment type, this product uses part of your cash value to invest into an investment of your choice.

For instance, policyholders oftentimes use the funds that are in the cash value to supplement retirement income and / or to increase the amount that is deposited into tax - advantaged accounts.

Some companies will even allow you to use the accumulated cash value to pay future premiums, effectively using the life insurance policy itself to pay its own premiums.

You can also use the cash value to pay your premiums, if you so choose.

You choose how your premium dollars are invested, and you may use the cash value to supplement your retirement income through policy loans.

A few policies guarantee the cash value to be no less than the one time deposit.

A policyholder may also choose to leave it in the policy and allow the cash value to grow.