Sentences with phrase «contracts accumulate cash values»

Certain life insurance contracts accumulate cash values, which may be taken by the insured if the policy is surrendered or which may be borrowed against.

Not exact matches

The difference between the cash and the surrender value is that if you surrender your policy (for example, if you choose to cancel and cash out the life insurance policy), you will receive the cash value that has accumulated less any applicable surrender charges; these charges are pre-determined by the life insurance company, and are stipulated in your policy contract.

In the world of annuities, there are a few different types of contracts which vary based upon how the cash value is accumulated on a tax deferred basi...

Like other types of cash value life insurance policies which allow policy loans, most annuity contracts allow owners to borrow against the annuity contract's accumulated cash value.

With a permanent life insurance contract, you have the flexibility to surrender the policy and supplement your retirement income with the funds that have accumulated in the policy's cash value account.

The company's universal life policies are flexible - premium and adjustable - benefit contracts which accumulate cash value, while a whole life policy from Americo is typical life coverage.

The small life insurance contracts had a small cost of insurance, and could still accumulate significant gain based on the dividend payments made into the policy by the insurance company (dividend payments grow larger as cash value is higher).

In the world of annuities, there are a few different types of contracts which vary based upon how the cash value is accumulated on a tax deferred basis.

In a previous article focusing on the tax advantages of life insurance, we discussed that the cash value accrual in a life insurance contract is allowed to accumulate tax free inside the policy.

The cash value that develops in a whole life insurance policy is not «insured» in the sense that it is not guaranteed to accumulate at a rate greater than the minimum rate set forth in the contract.

Alternatively, in life insurance contracts, an accelerated option can refer to the option that allows the policy holder to apply the accumulated cash value to pay off the policy.

Cash values accumulating in the contract are subject to inflation.

Term life policies do not accumulate cash value because, unlike a permanent life policy, term life policies are betting on you outliving the contract.