Sentences with phrase «enough cash value in a policy»

For example, if you were to have enough cash value in your policy, you could use it to help pay for educational expenses or even pay your insurance premiums.

That means if you have enough money in the cash value, you can use that to skip premium payments entirely, letting the accrued interest do the work — but keep in mind that this can typically only be done after the first year of the policy, and only if there's at least enough cash value in the policy to keep the policy inforce for another 60 days.

Universal life insurance is a flexible permanent coverage option that allows premium payments to increase or decrease, assuming you have enough cash value in your policy to meet your monthly premium charge.

To keep the policy in force, typically no premium needs to be paid as long as there is enough cash value in the policy to pay that month's cost of insurance.

There must be enough cash value in the policy to cover monthly charges if a lower premium is paid than the amount selected at issue or if a premium payment is skipped.

With a high enough cash value in a policy, the interest earned may cover more than the cost of insurance, and the policy will persist forever without additional payments.

The bad news, however, is that some policies have such significant loans that it's not affordable or economically feasible for the policyowner to keep the policy going, which may entail paying ongoing premiums, and life insurance loan interest (to keep the policy loan from further compounding to the point it forces the policy to lapse), or even paying additional cost - of - insurance charges to keep enough cash value in the policy to remain in force (in the case of universal life policies).

With enough cash value an owner could potentially remove his entire investment and still leave enough cash value in the policy to continue growing.

After the initial payment, a policyholder may vary the premium amount and frequency of payment, or even skip premium payment as long as there is enough cash value in the policy to cover the policy charges.

It typically takes 15 or more years to accrue enough cash value in a policy to offer a meaningful retirement income stream.

Not exact matches

Make sure you consult with an insurance professional prior to making changes in your policy's premiums., Universal Life Insurance coverage lasts to age 120, provided you continue to pay sufficient premiums or maintain enough cash value to cover monthly policy charges.

To sum up, an actual cash value policy costs less and will reimburse you if something happens to the stuff in your apartment, but not enough to buy everything new again.

When enough cash value has accumulated in your policy, you can use it to make premium payments over the lifetime of the policy, eliminating the need to make out - of - pocket payments.

There are typically some limitations to this, like only being able to do it after you've held the policy for a year or a requirement to have enough money in the cash value to keep the policy in force for two months.

In times of unemployment or a tight budget, this method can keep your policy active and in good standing as long as you have enough in your cash value feature to cover the premiuIn times of unemployment or a tight budget, this method can keep your policy active and in good standing as long as you have enough in your cash value feature to cover the premiuin good standing as long as you have enough in your cash value feature to cover the premiuin your cash value feature to cover the premium.

It offers cash value but only in enough amount to guarantee a level premium throughout the length of a policy whether to age 100 or 121 depending on the company and policy type.

If your policy has been in force long enough it will accrue cash value that can be borrowed against.

This may give them enough cash surrender value to later be able to surrender the policy for the amount of premium they have in it.

The convertible insurance policy provides the option to change the face value of the policy into a cash - value policy offered by the insurer in case you reach 65 years of age and are not financially secure enough to go without insurance.

With this option, the premium will still be paid by the policyholder — automatically — by a loan against the cash value of the policy, as long as there is enough cash value that has been built up by that time inside of the cash value component in order to cover such a loan.

You can even set up your policy to use the cash value to pay your premiums for you should you ever not have enough money in the bank to cover the payment.

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.

There are typically some limitations to this, like only being able to do it after you've held the policy for a year or a requirement to have enough money in the cash value to keep the policy in force for two months.

To sum up, an actual cash value policy costs less and will reimburse you if something happens to the stuff in your apartment, but not enough to buy everything new again.

Since the premiums are beginning to increase I would assume that you have had this policy for many years and it has come to the end of the term or it is a permanent plan that didn't grow cash value enough to keep it stable in price.

If you can only afford $ 200 that year, or nothing at all, your policy may still stay in force if it has enough cash value to support the costs.

A cash value policy may not be enough to rebuild in the event of catastrophic damage.

It takes years to build up a decent amount of cash value and since most people buy final expense policies in their 50s, 60 s or 70s you likely won't see enough cash value to stop paying for the policy.

The key thing to remember about a UL policy is to make sure you are putting in enough money each month where you can reasonably expect that it will never run out of cash value.

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).

Policy owners are able to take out policy loans if there is enough money in the cash value acPolicy owners are able to take out policy loans if there is enough money in the cash value acpolicy loans if there is enough money in the cash value account.

The way it works is simple enough: A portion of each premium payment goes into an interest - bearing savings account, so the value of the cash accrual goes up faster the longer you have the policy in effect.

If you don't maintain a large enough balance in your cash value account, withdrawals may also risk causing your policy to lapse.

Your policy stays active as long as enough cash is in the cash value to support the cost of insurance.

Over time, the cash value in your policy may generate enough dividends to pay policy premiums.

Dividend payments are typically large enough that whole life owners actually can expect to have a positive rate of return on their life insurance during the life of the owner, meaning after a certain amount of time the cash value of the policy will be larger than the amount of money paid in.

When enough cash value has accumulated in your policy, you can use it to make premium payments over the lifetime of the policy, eliminating the need to make out - of - pocket payments.

If done correctly enough cash value will be left in the policy from the gain to continue to keep the policy in force without additional premium payments.

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).

Policy owners can even take withdrawals from the cash value late in the policies life, and still have enough value to keep the policy in force for the entire life of the inPolicy owners can even take withdrawals from the cash value late in the policies life, and still have enough value to keep the policy in force for the entire life of the inpolicy in force for the entire life of the insured.

With universal life insurance policies, if you can not afford to make your premium payment and there is not enough cash value built to pay the premium, your insurance coverage will still be in effect.

Once the cash value account of a whole life policy has enough in it, you have the option to use it for premium payments on your policy.

Depending on the credited interest, there may not be enough cash value to keep the policy in force, thus requiring higher premium payments from the policyholder.

In order for these options to be available, however, the policy must have enough cash value accumulated to cover the payment amount.

If you do not have enough cash value, then non-payment of premiums can result in cancellation of your policy, or it may be converted into a reduced paid - up policy.

If there is enough cash value to cover the cost of insurance in the policy than premiums can be drawn from the cash value.

Using a variable universal life policy as a way to make a lot of money is generally futile unless the policy is paid for in one lump sum during a period of essentially bottomed - out markets, because that would create enough cash value in the account to make sizable investments for the long term.

A policy collapses when the cash value plus any continuing payments aren't enough to keep the basic insurance in force, and that causes the previously tax - free loans to be viewed as taxable income.

Cash - value guidelines can be a great financial move but do not set up a plan like this unless you can anticipate making it in position long enough to get life insurance for 91 year old policies from the advantages it offers.

That said, if at some point in your life you may feel a need to lower your premiums, you can do so by adjusting your premiums based on your cash value but keep in mind that these adjustments can only be done after the first year of the policy and only if you have enough cash value that can keep your policy in force for another two months.