Sentences with phrase «component of a universal life insurance policy»

Cash in the cash component of a universal life insurance policy can be withdrawn for borrowing — and this can be done for any reason.

Not exact matches

Policies such as variable universal life insurance combine components of the above, blending the investment flexibility of variable life with the ability to use the cash value to pay monthly premiums offered in universal life.

Universal life insurance is similar to whole life insurance in that a portion of your monthly premiums go toward a savings component of the policy, called the «cash value.»

You're entitled to go fishing (for eligibility requirements): A traditional fully underwritten whole life or universal life policy gives you coverage for life, pays out the insurance benefit upon your death and includes an investment component of accumulated cash value.

As with whole life insurance, the cash value in a universal life (or UL) policy can grow on a tax - deferred basis, and the money in this component of the policy may be withdrawn or borrowed by the policyholder for any reason.

The fixed indexed universal life insurance policy allows the cash component to experience growth that is based on an underlying market index, such as the S&P 500 — yet, in times of a market downturn, the policyholder won't lose value in their cash component.

But there are some cases in which the cash value component of a permanent life insurance policy can be useful (to pay off large estate costs, for instance, or as a means to pass tax - free inheritance if other assets are large enough to trigger estate taxes) and something like an indexed universal life insurance policy can come in handy.

Universal Life - This is a permanent insurance plan which provides for separation of insurance and savings components of the policy.

With indexed universal life insurance, the return on the policy's cash value component will be based in large part on the performance of an underlying market index, such as the S&P 500.

The universal portion means that premiums are flexible and the components of the life insurance policy (death benefit, savings element and premium) can be altered throughout the contract.

To put it simply, variable universal life insurance is a policy that allows you to build cash value inside of the policy and also has an investment component to the plan.

In addition, the policyholder of a universal life insurance policy may also be able to decide how much of their premium dollars will go towards the death benefit, and how much will go towards the cash value component of the policy.

Once you understand the major components of ordinary life insurance, you'll know we're speaking of products like universal life insurance, indexed universal life insurance, variable life insurance, and whole life insurance (including survivorship policies).

One of the most misunderstood types of policies is a variable universal life insurance plans, there are several different components of the insurance policy that you should be aware.

A universal life insurance policy will typically allow the policy holder to move funds between the insurance portion of the policy and the cash value component.

As with other types of permanent life insurance, a variable universal life insurance policy will also allow the policy to obtain the benefit of tax - deferred growth within the cash component.

Universal life insurance offers policy holders a great deal of flexibility in that they can choose — within certain parameters — when they make their premium payment, as well as how much of that payment is allocated to the death benefit and how much of it is allocated to the cash value component.

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There are many nice advantages that can be gained by owning a universal life insurance policy — including the fact that their holders have a great deal of flexibility regarding when and how much premium they pay (provided that there is enough cash in the cash value component to cover the cost of the policy's death benefit).

In addition to just providing a death benefit, however, this indexed universal life insurance policy will also credit interest to a cash value component of the policy that is based on the performance of an underlying index such as the S&P 500.

Also, depending on how the interest rate in the cash value component will be credited, the rate of return on a universal life insurance policy is oftentimes higher than it is on a comparable whole life insurance plan.

Policies such as variable universal life insurance combine components of the above, blending the investment flexibility of variable life with the ability to use the cash value to pay monthly premiums offered in universal life.

Universal life insurance is similar to whole life insurance in that a portion of your monthly premiums go toward a savings component of the policy, called the «cash value.»

Universal life insurance was created to provide more flexibility than whole life insurance by allowing the policy owner to shift money between the insurance and savings components of the policy.