Sentences with phrase «early years of the policy»

The amount of premiums in early years of the policy is considerably higher than in Term Life policies, which result in developing cash values.

Typically, you will pay higher premiums since, in the early years of your policy, it should accumulate enough value to off - set the higher insurance risk that comes with aging.

Typically, you will pay consistently higher premiums since, in the early years of your policy, it should accumulate enough value to off - set the higher insurance risk that comes in later life.

But I also want to mention that even though an FIA doesn't typically charge an annual management fee, it will likely charge a surrender charge during the early years of the policy.

The answer lies in the early years of the policy.

In the early years of the policy, a higher percentage of your premium goes toward the cash value.

Generally, this cash value can grow quickly in the early years of the policy.

If you have permanent life insurance, more of your insurance premium goes to cash value in the early years of your policy.

In the early years of your policy, a larger portion of your premium is invested and allocated to the cash value account.

The initial fees and expenses make it difficult to get ahead in the early years of your policy.

Whole life insurance premiums in the early years of the policy exceed the insurance costs of the company.

What you are effectively doing is overpaying the true annual insurance cost in the early years of the policy.

In the early years of the policy, the cash or surrender value will be quite low, or non-existent.

Premium Allocation Charges vary from insurance company to insurance company, and are almost always higher in the early years of the policy.

Typically, you will be pay consistently higher premiums since, in the early years of your policy, it should accumulate enough value to off - set later, higher insurance risk.

In the early years of your policy, the majority the premium is paid towards the death benefits and very little is paid toward the cash value accumulation feature.

The other variation — Decreasing term — is the least expensive of all because, while the premium remains unchanged, the face value drops every year, giving the company the greatest risk in the early years of the policy when you are least likely to die.

In the early years of the policy, the premiums are higher than term life but the monies go toward a special account that is invested (at a typical rate of 2 - 4 percent) and builds up a cash value.

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.

During the early years of the policy, the premium mostly goes to funding the indemnity benefit, but the cash value continues to increase as the policy matures.

In the early years of the policy, the cash or surrender value will be quite low, or non-existent.

In these cases, the policy owner may have the option of paying additional premium in the early years of the policy to create a tax deferred cash value.

Also, VUL is typically subject to surrender charges for a period of up to 15 years (more or less depending on the carrier) which can be very high in the early years of the policy.

VUL is typically subject to surrender charges for a period of up to 15 years (more or less depending on the carrier) which can be very high in the early years of the policy.

Another unique feature is policyholders can add more coverage in the early years of the policy.

In the early years of the policy, there may be little value, if any, to borrow against

Annual renewable term is generally less expensive in the earlier years of a policy.

A policy which is a good buy when held for 20 years can be very costly if you quit during the early years of the policy.

If you have permanent life insurance, more of your insurance premium goes to cash value in the early years of your policy: a step - by - step guide.

You essentially overpay for the cost of insurance in the early years of your policy so that enough cash accumulates to cover the cost of insurance when you reach your 70's and 80's.

The premiums required to pay for the death benefit are higher than term life policies in the early years of the policy.

In the early years of your policy, a larger portion of your premium is invested and allocated to the cash value account.

In the early years of the policy, a higher percentage of your premium goes toward the cash value.

The cash value accumulation on a whole life policy and a universal policy build quickly in the early years of the policy, and decreases as you get older because more of the premium goes toward the death benefits.

Whole life insurance inflates the premium over the pure cost of insurance in the early years of the policy.

In the early years of a policy, life insurance companies can deduct fees upon cash surrender.

The other disadvantage is that the bulk of your premiums go to cover the cost of the death benefits and other administrative fees (many of these fees aren't transparent), so you don't reap a lot of benefit for the cash value accumulation in the early years of the policy.

Generally, this cash value grow can grow quickly in the early years of the policy.

Realize that you'll have to pay premiums that are higher than other types of life insurance, at least in the early years of the policy.

This also requires some consideration, however, as during the early years of the policy, there may be surrender charges involved.

Cash value policies are typically «front - loaded» with commissions and fees during the early years of the policy.

Whole life insurance premiums in the early years of the policy exceed the insurance costs of the company.

The answer lies in the early years of the policy.

In the early years of your policy, most of the premiums go to cover the death benefits and administrative fees to manage the policy.

For the first 5 to 10 years the majority of the premiums you pay in these early years of the policy is applied to the death benefits portion (cost of insurance) along with policy fees & commissions.

What you are effectively doing is overpaying the true annual insurance cost in the early years of the policy.

Whole life insurance policies can cost thousands of dollars a year in the early years of the policy.

Many people who buy these policies make the mistake of not funding them properly during the early years of the policy, and as a result they are left with a very expensive life insurance policy later in life.

In the earlier years of the policy's coverage, the policyholder pays a premium higher than the cost of insurance, and the balance of the premium is placed in an accumulation account that earns interest on a tax - deferred basis.

The face amount of your policy will be higher than your cash value especially in the early years of your policy.