Sentences with phrase «guaranteed cash value of the policy»

Not exact matches

Should the policy offer attractive guaranteed rates of return, over time the cash value will grow to a reasonable level without being subject to market volatility or capital gains taxes.

Some permanent policies are eligible to receive dividends, and although they aren't guaranteed, they help to increase the cash value and death benefit of the policy.

Variable life insurance is also similar to whole life insurance but, instead of having a guaranteed rate of growth, the cash value of the policy can be invested in sub-accounts offered by the insurer.

If you're considering permanent life insurance, but are wary of the complexity of the policy and not interested in the cash value or investment benefits, guaranteed universal life insurance is a less expensive way to purchase nearly - lifelong coverage.

Whole Life Insurance Definition: also known as ordinary life insurance, it is a type of permanent life insurance policy that offers a guaranteed death benefit, guaranteed fixed premium, guaranteed cash value and guaranteed access to the policy's cash value through loans and withdrawals.

Guaranteed Universal Life Insurance ties policy cash value growth to a fixed interest rate of return

Participating policies essentially participate in the profit of the insurance company and pay out a dividend, which is added to the guaranteed cash value.

In some cases, cash value insurance, specifically whole life insurance, features a minimum rate of return guarantee on funds held in a policy's cash account, which is one of many whole life insurance pros and cons.

«Participating life insurance» is only possible with a cash value life insurance policy as distinguished with other types of life insurance that do not accrue cash value such as convertible term life insurance or most guaranteed universal life insurance policies.

Variable life insurance is also similar to whole life insurance but, instead of having a guaranteed rate of growth, the cash value of the policy can be invested in sub-accounts offered by the insurer.

Take a look at this chart of a sample whole life policy that pays dividends and offers a guaranteed minimum cash value.

Whole life insurance tends to have a guaranteed rate of growth for the cash value component of the policy and often pays annual dividends.

And here is an illustration of a properly designed 10 pay whole life policy for a 4 yo boy with a guaranteed insurability rider with an A + rated carrier focused on cash value growth.

While it's not the core benefit of the policy, Symetra's guaranteed universal life insurance also builds a cash value with a guaranteed 2 % annual interest rate.

If you're considering permanent life insurance, but are wary of the complexity of the policy and not interested in the cash value or investment benefits, guaranteed universal life insurance is a less expensive way to purchase nearly - lifelong coverage.

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.

The cash value of a VUL policy is not guaranteed.

However, cash value accumulation isn't the usual emphasis of guaranteed universal life insurance, policies do allow for the accumulation of some cash value and allow you to access it.

At the end of the guarantee period, if only the required premium has been paid, the policy may lapse for insufficient cash surrender value.

• Earnings potential The issuing insurance company may guarantee a minimum growth rate on the cash value of the policy in some cases.

A portion of your premium will be applied to the policy's cash value and grow at a minimum rate guaranteed by the issuing insurance company.

With whole life, the amount of the death benefit is guaranteed, and the cash value that is within the policy is allowed to grow on a tax - deferred basis.

Cash value life insurance coverage usually guarantees a rate of return around 4 % with today's interest rates and this return should be viewed as a baseline because the non-guaranteed portion of the policy includes dividends that are tax free and reinvested.

Whether the return of cash value is guaranteed, as in a whole life or guaranteed UL policy OR whether based upon the financial markets, as in IUL and Variable UL policies, the idea behind permanent insurance is to accrue a nest egg of usable cash value within a life insurance policy.

With these two «bookends» in place your policy cash value (the account that you are relying on for retirement) has the ability to grow up to 13 % per year, while also have a guaranteed minimum «floor» of around 1 %.

2 The adjusted total premium is the initial single premium plus any underwritten increases, less any partial surrenders and any applicable surrender charges in excess of policy gain and any loans and accrued loan interest, The death benefit guarantee will not apply if the sum of any outstanding loans plus accrued loan interest is greater than the policy's cash value, The death benefit guarantee will not apply if the sum of any outstanding loans plus accrued loan interest is greater than the policy's cash value.

Penn Mutual's participating whole life insurance policy provides all the guarantees of whole life, with an opportunity for increased cash value accumulation through annual dividends paid to policyholders.

The Accumulation Builder from Penn Mutual is an indexed universal life policy that builds cash value, with the peace of mind of up to 20 year no lapse guarantee based on your age.

The cash value of universal and variable policies is not guaranteed, although some policies set a minimum death benefit.

The cash value of a variable universal life insurance policy is not guaranteed.

Because it offers flexibility and a cash value option, guaranteed universal life insurance offers policy holders many possible ways to put the cash value and death benefit to work for them, some of which include:

With this type of policy, an individual can have a guaranteed death benefit, level premiums, and cash value that can offer long - term financial stability and protection.

Some carriers offer guaranteed universal life insurance options and adjust the amount of the premium higher while making the policy amount lower, so that in addition to offering a guaranteed death benefit, the policy almost immediately begins to generate a larger cash value.

* Some IUL policies do offer a no loss guarantee and tax free accumulation of cash values so this can be considered on a case by case comparison.

A flexible - premium universal life insurance policy that provides for potential cash value growth through an interest crediting linked to major market indexes, so you can participate in the upside potential of the equities markets with built - in guaranteed downside protection.

A flexible - premium, cost - effective life insurance policy offering both the opportunity for lifetime insurance protection and the potential accumulation of cash value through allocation to a Select Account and / or a Guaranteed Interest Account.

On the other hand, again like EIAs, there is a guaranteed minimum cash value that serves as a floor on policy values in case of a declining stock market.

The cash value of variable insurance isn't guaranteed if your investments underperform, and the cash value of a universal life policy is protected from risk but can be depleted if it's accessed to pay the policy premiums (explained below); neither offers dividends.

A flexible - premium, cost effective universal life insurance policy offering both the opportunity for lifetime insurance protection and the potential accumulation of cash value through allocation to a Select Account and / or a Guaranteed Interest Account.

The cash - value component of a whole life insurance policy pays out dividends, although they're not guaranteed.

Some of these offer the guarantee of a minimal amount of interest, as well as the ability to take a loan out against the cash value, without lapsing the policy.

Most Universal Life policies will also provide a guaranteed rate of return on your cash values, with one important exception.

There is no guaranteed minimum cash value, but most policies have a minimum guaranteed death benefit provided you pay the premiums for a set number of years.

As an example, a properly structured cash value whole life insurance policy that is purchased from a mutual company, is one that has tremendous liquidity, low cost (majority of the cost is buying lifelong level insurance — not to be compared to term), no tax on the growth of the account, tax free loans, tax free withdrawals (up to basis), tax free to survivors, no contribution limits, no required withdrawals, is free from creditors, and has minimum guarantees.

Your cash value and your death benefit will vary depending on the performance of the accounts, although some policies may contain a guaranteed minimum for each.

The cash value of a policy can increase over the years (or decrease), but usually a whole life insurer offers a guaranteed minimum interest.

There is no guarantee on the cash value of this type of policy as you are subjected to investment risk.

(Note that dividends are not guaranteed and borrowing cash value from your policy requires the payment of loan interest and will reduce your cash value and death benefit.)

One can compare benefits of both policies based on aspects like availability of loan, surrender value, tax benefits, death benefits, etc. for Max Life Guaranteed Income Plan and IndiaFirst Cash Back Plan.

Surrender value of Max Life Guaranteed Income and IndiaFirst Cash Back Plan is the amount of money that will be provided by the insurance company in case you want to surrender the policy before maturity.