Sentences with phrase «charged against your cash value»

A surrender charge is a hold back amount that an insurer charges against the cash values of a life insurance policy for the first 8 to 10 years, if funds are withdrawn early.

Surrender Charge Typically applicable to adjustable life, indexed universal life, and variable universal policies, a generally declining schedule of charges against the cash value may be imposed on the policy for a certain number of years from policy inception if the policy is surrendered, the death benefit is reduced, or in some instances, the surrender charge is taken into account in the monthly calculation to determine if the policy is still in force.»

The annual investment or management investment fees charged against your cash value are designed to make sure the universal life insurance company is profitable even when their portfolios perform poorly.

Not exact matches

Mortality and expense charges assessed against cash values can range from.6 to.9 percent.

It's important to note that when you borrow against the cash value of your policy, interest will be charged on the loan, but in most cases the interest rate tends to be very low.

The main purpose of the legal reserve is to provide lifetime protection, but because more money is collected in premiums in the early years of a policy than is needed to cover the mortality charge, level - premium policies develop a cash value, which the policyholder can borrow against, or can surrender the policy for its cash value if the policyholder no longer wishes to continue the life insurance policy.

It is important to note, however, that even though a withdrawal or a loan is not required to be paid back, if there is an unpaid balance in the cash - value component of the policy at the time of the insured's death, then the amount of that balance will be charged against the death benefit that is paid out to the policy's beneficiary.

If you decide to decrease the coverage, you must be aware of the fact that a decrease below the required minimum may lead to a surrender charge applied against the cash value.

It's important to note that when you borrow against the cash value of your policy, interest will be charged on the loan, but in most cases the interest rate tends to be very low.

Missed premiums are deducted as loans against the cash value and often charge an interest rate upon repayment.

It is important to note here, though, that any un-repaid balance in the cash value that remains at the time of the insured's death will be charged against the amount of the death benefit that is paid out to the policy's beneficiary.

Colonial Penn Guaranteed Issue policies do build cash value and can be borrowed against; however, Colonial Penn charges an 8 % interest rate on any loans made against the cash value.

While a permanent policy's cash value can be borrowed against to help with expenses such as retirement or college tuitions, the loans can reduce the death benefit and cash value of the policy and the loan interest may be charged on the amount borrowed.

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..

The cash value accumulation portion of any permanent life insurance is only available to the insured person while they are still alive, and is available to borrow against (for which the policyholder will be charged interest) or for withdrawal.

Any amount of an unpaid cash value balance, however, will be charged against the death benefit that is paid out to the policy's beneficiary at the time of the insured's death.

Mortality and expense charges assessed against cash values can range from.6 to.9 percent.

It is important to note, however, that any unpaid cash value balance will be charged against the death benefit if the insured passes away before the balance is repaid.

A policy loan is a loan against your cash value that you would have to pay back and they charge you an interest on the money you took out.

The investment component serves as «bank» of sorts for the amounts left over after charges are applied against the premium paid, namely charges for mortality (to fund the payouts for those that die with amounts paid beyond the cash values), administrative fees (it costs money to run an insurance company (grin)-RRB- and sales compensation (the advisor has to earn a living).