Sentences with phrase «current cash value of the policy»

If the combined loan principal and accrued interest exceed the current cash value of the policy, the policy will lapse.

The current cash value of this policy is a little over $ 42,000.

It's typically the current cash value of your policy minus any outstanding loans and interest fees, as well as any surrender or administrative fees listed in your contract.

Not exact matches

If you have an old car, however, the current cash value your policy pays might not be worth the cost of the premiums and deductible for the coverage.

You can access cash value, through loans and withdrawals, potentially free of current income tax as long as the policy stays in force until the Insured's death.

High early cash values are based on the assumptions of current interest crediting rates and current charges which are not guaranteed, and are subject to change by the insurer, and assume the policy is optimally funded.

If you're thinking of buying a cash value life insurance policy, ask your agent or company for a sales illustration, which is a computer projection of future premiums, cash values and death benefits based on the current dividend scale (whole life) or current interest rates and current costs of insurance (universal life).

Dividends that are considered a return of premiums to policy holders are not taxable under current laws allowing for tax free ongoing growth of your cash value.

Additionally, the cash value of a universal life insurance policy has an interest rate that's sensitive to current market interest rates.

* All permanent policies can be surrendered for their current cash value after a certain number of years, at which point the insurer pays the accumulated cash value minus any loans and fees.

Additional out - of - pocket payments may be needed if actual dividends or investment returns decrease, if you withdraw policy cash values, or if current charges increase.

If the policy has a cash value, Mostly Mutts Animal Rescue would have the option of either holding the policy until the maturity date or surrendering the policy to receive the policy's current cash value.

If the policy has a cash value, Grey Muzzle would have the option of either holding the policy until the maturity date or surrendering the policy to receive the policy's current cash value.

A life settlement is the sale of an existing life insurance policy to an institutional investor at a price higher than the current cash surrender value, but lower than the face amount of the policy.

The amount of gain in the policy (the current cash value minus the dollars you contributed along the way) would be taxed at ordinary income tax rates.

Whole life insurance policies cost more and there is no guarantee of the cash benefit as it is based on current market value.

The insured can also get a cash payout of its current value should they want to cancel the policy.

On average, policy sellers receive anywhere from four to seven times the amount of the policy's current cash surrender value.

Dividend Dividends are cash payments credited to whole life policies generally as a percentage of current cash value.

* All permanent policies can be surrendered for their current cash value after a certain number of years, at which point the insurer pays the accumulated cash value minus any loans and fees.

Additionally, the cash value of a universal life insurance policy has an interest rate that's sensitive to current market interest rates.

One option since your young you could take the case value of the current policy and do a 1035 exchange (tax free transfer of the cash value from one policy to another) to a plan that has a lower death benefit and little to no premium.

Part of each premium payment is applied to the policy's cash value account, which grows on a tax - deferred basis (based on current federal tax laws).

Instead of using dividends to augment guaranteed cash value accumulation, the interest on the policy's cash value varies with current market conditions.

Under the terms of the policy, the excess of premium payments above the current cost of insurance is credited to the cash value of the policy.

Here's an example of guaranteed and non-guaranteed cash values, using a $ 1 million whole life policy with a $ 73,770 annual premium and the current dividend scale:

You may roll the cash value of your current policy into a paid - up life insurance policy.

Similarly, the cash value in your current policy may also be enough to pay the premiums for a number of years into the future, but that, too, will erode the death benefit over time, as the loans to pay premiums accumulate with interest (if you were not paying some or all of those amounts back to the insurance company).

However, current laws require those involved in the spend - down process to usually spend most, if not all, of the available cash value in a traditional, unprotected life insurance policy.

The only advantage of an interest - sensitive life insurance policy is its ability to include excess or current interests into the policy which results to an accumulation in your cash values.

Dividends are cash payments credited to whole life policies generally as a percentage of current cash value.

Note, then, that most car insurance policies will only cover our new car against damage or loss up to the Actual Cash Value (ACV) of your current vehicle.

Another built - in feature of most term life policies is the right to convert your coverage to any permanent cash value policy that the company offers at current rates without having to take another medical exam.

Currently, you can utilize this site to obtain: Current Cash Value of Whole Life, Universal Life and Variable Universal Life policies.

If you no longer want your whole life policy, you can surrender it to receive the current cash surrender value or convert it into an annuity, but keep in mind that cashing in a permanent policy after only a couple of years is an expensive way to get insurance coverage for a short time.

The current generation of VUL policies have a wide variety of sub-accounts for the policy owner to allocate their cash surrender values into.

The cash value in life insurance is able to earn investment returns without incurring current income tax as long as it meets the definition of life insurance and the policy remains in force.

If the policy is kept current and if accrues its cash value, one is sure to get the payout at the end of the policy.

Charlie has a universal life policy into which he's paid $ 125,000 of premiums, and the policy has a current cash value of $ 200,000.

Investors buy groups of life insurance policies for more than their current cash value because with a large enough group of policies, they will make money from the death benefit payouts.

The payment of dividends to policy holders offers significant tax advantages for cash value growth because the dividends are not taxable as income but are viewed under current tax laws as overpaid premiums being refunded to policy holders.

Dividends that are considered a return of premiums to policy holders are not taxable under current laws allowing for tax free ongoing growth of your cash value.

If Charlie does a 1035 like - kind exchange from his current life insurance policy to a new, smaller policy for «just» the $ 50,000 of net cash value, he's actually treated as having exchanged $ 50,000 of cash value plus receiving another $ 150,000 of cash to boot, which was used to repay the loan... and that $ 150,000 of «boot» is taxable as a partial surrender of the policy.

A unit - linked insurance plan (ULIP) is a type of life insurance where the cash value of a policy varies according to the current net asset value of the underlying investment assets.

An «actual cash value» (ACV) policy (also known as an «actual cost value» or «depreciated» cost policy), which is the cheaper option, will pay you the current value of your belongings after depreciation.

You can access cash value, through loans and withdrawals, potentially free of current income tax as long as the policy stays in force until the Insured's death.

The cash surrender value of a life insurance policy is property for purposes of section 3670 of the Internal Revenue Code of 1939 (now section 6321 of the current Internal Revenue Code of 1986, as amended), imposing the Federal tax lien.

It shows the product's current guaranteed and non-guaranteed values based on how the policy's underlying sub-accounts affect the policy's cash value and death benefit, assuming a rate of return that is reasonable, given the client's risk tolerance and market conditions.

This is why a life insurance policy with a loan lapses if the outstanding balance of the loan gets too close to the current cash value — in essence, it's just the insurance company foreclosing on the insurance policy collateral to pay off the loan before there's any possibility that the loan could go underwater.

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