Sentences with phrase «gross value of the policy»

Not only does a lapsed policy cancel death benefit protection but, as mentioned earlier, it can also result in tax consequences — the IRS requires a policyholder to pay taxes on gains based on the gross value of a policy, even if that value reflects the loan amount the policyholder needs to repay.

This is because the cash value loan value (known in the tax world as boot) is the gross value of the policy when it lapses.

Not exact matches

Specifically, benefits subject to the HP Severance Policy include: (a) separation payments based on a multiplier of salary plus target bonus, or cash amounts payable for the uncompleted portion of employment agreements; (b) any gross - up payments made in connection with severance, retirement or similar payments, including any gross - up payments with respect to excess parachute payments under Section 280G of the Code; (c) the value of any service period credited to a Section 16 officer in excess of the period of service actually provided by such Section 16 officer for purposes of any employee benefit plan; (d) the value of benefits and perquisites that are inconsistent with HP Co.'s practices applicable to one or more groups of HP Co. employees in addition to, or other than, the Section 16 officers («Company Practices»); and (e) the value of any accelerated vesting of any stock options, stock appreciation rights, restricted stock or long - term cash incentives that is inconsistent with Company Practices.

Account Value: This is the accumulated gross value of all the investments contributed to the policy which include the income after deducting all the current monthly expeValue: This is the accumulated gross value of all the investments contributed to the policy which include the income after deducting all the current monthly expevalue of all the investments contributed to the policy which include the income after deducting all the current monthly expenses.

Notably, as with any policy that has a substantial loan, the taxable gain will still be based on the gross cash value (before repayment of the loan), which means it's possible that most / all of the cash value proceeds will be consumed by the tax liability for any gain.

If you own part or all of the policy when you die, the value of the policy can be included in your gross estate for federal estate tax purposes.

In other words, the exchange should still be for the gross cash value of the life insurance policy with a loan, for a new replacement policy that receives all that cash value and the loan commitment.

If the legal owner of a large life insurance policy passes and that person's gross estate value is greater that the current estate tax exemption, then the death benefit from the policy would likely be subject to steep estate taxes.