Sentences with phrase «if accrues its cash value»

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.

Not exact matches

SolarCity's recurring cash flows exceed a net present value of $ 2 billion [2] above and beyond non-recourse debt repayment, all of which will ultimately accrue to the combined company if the acquisition is approved.

Or you may wish to lock in a steady rate with a permanent life insurance policy, which accrues cash value, and pays a guaranteed death benefit, even if you live to be 100 years old.

It accrues cash value that can be used as collateral, or liquidated if necessary.

In addition to providing death benefits, some policies also accrue a cash value that you can collect at any time if the need arises.

Let's focus on the first 2 types because the latter isn't really for the purpose of accruing much cash value if any.

However, this can backfire because if people ease off of paid up addition, this can undermine their strategy of accruing cash value.

In general, cash value that accrues within the life insurance policy not taxable if not withdrawn from the policy.

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.

This means that the cash value accrued in your life insurance policy must be spent if you're seeking to qualify for a state Medicaid program unless another option is pursued.

Cash value can be accessed through loans and partial surrenders which accrue interest and, if not paid back, will reduce the policy's death benefit and cash vaCash value can be accessed through loans and partial surrenders which accrue interest and, if not paid back, will reduce the policy's death benefit and cash vacash value.

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.

It accrues no cash value paid out at the end of the term, if you're still living.

If your policy had accrued cash value, you may have limited coverage based on the «Non-Forfeiture Benefit» or «Options Upon Lapse» terms of your contract.

When activated, the Overloan Protection Rider converts the policy to a «paid - up» status and prevents the policy from lapsing when the policy's cash surrender value is insufficient to cover monthly deduction charges due to significant loans or if any outstanding loans plus accrued interest exceed cash value.

Whole life policies offer living benefits, including tax - free dividends that may accrue (referred to as the policy's cash value); you may even be able to borrow money against the value of a whole life policy if there comes a time that you decide you need to do so.

So, if a policy's cash value has accrued substantially, it could be a good source for paying off higher interest debt and for supplementing retirement income in the future.

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

For example, on death, if the cash value accrued within a policy is $ 100,000.

In many cases a whole life insurance policy will provide some sort of cash value — although that cash value is likely to be far less than the death benefit that would accrue if the policyholder were to die.

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

Universal life allows the policyholder to use money in the accrued cash value to pay premiums if the policyholder is unable to make the payments.

The policy will accrue cash value which he'll have access to if needed.

If you decided that you do not want or need your permanent life insurance policy, you can give up the policy for the cash surrender value, or the accrued cash value.

In addition, if the loan balance and accrued interest exceed the cash value of the policy, it will be terminated.

In addition to providing death benefits, some policies also accrue a cash value that you can collect at any time if the need arises.

If you are concerned with accruing cash equivalency value or having more policy control with coverage flexibility, then it may be worth your time to invest in a more permanent form of life insurance.

If you have accrued enough cash value equivalency on your policy, then you will have the flexibility to do a lot of things.

The money in the whole life accrues a cash value that can be used later if you need it.

However, besides lifelong coverage, it offers the added benefit of accruing a cash value, which you can liquidate or borrow against, if the need arises.

Policy loans do accrue interest, and any outstanding policy loans and interest will reduce the death benefit and cash value (if applicable).

You can pay back the money plus accrued interest or, if you choose to not pay back the money borrowed, it will simply be deducted when the policy's death benefit is paid, or else deducted from the cash value when the policy is cashed in.

Perhaps what needs to be said is that the accrued interest is also deducted from the cash value — either in advance (at the time the loan is taken) or in arrears (at the end of 12 months if it has not been repaid)-- and added to the loan principal.

If cash value is not necessary, you will really be a better candidate for a guaranteed universal life policy to age 120, which still provides lifetime coverage protection, but will accrue little to no cash value.

If you cancel your life insurance policy, you will get the accrued cash value.

Nonetheless, the bottom line remains: if Barbara doesn't need the cash value (in this case she doesn't, as it's inside an ILIT anyway), and can afford to continue paying the premiums, maintaining the life insurance death benefit as a «fixed income substitute» actually turns out to be a remarkably appealing fixed income investment to maintain for the rest of her life... even if the reality is that the return will only accrue to her beneficiaries and not herself.

However, this can backfire because if people ease off of paid up addition, this can undermine their strategy of accruing cash value.

Excess premium over cost of insurance accrues in the cash value, and if no payments are made the value is reduced by the cost of insurance.

This means that the cash value accrued in your life insurance policy must be spent if you're seeking to qualify for a state Medicaid program unless another option is pursued.

Withdrawals or loans in excess of the cost basis create a taxable event if the policy is later surrendered or lapses for nonpayment of premium (or insufficient cash value due to accrued interest on loans).

They build up cash value equal to the amount you pay in (if you pay in $ 5, you accrue $ 5 in cash value).

Alternatively, this person could purchase a whole life policy that will not only pay that policy face value if they should die before their children are through college, but would also accrue a cash value that would provide additional benefits to his or her family or a growing fund of emergency money.

Only whole life insurance, not term, accumulates cash value from which a loan may be taken While the loan does not have to be repaid, if it is not, the loan plus accrued interest will be deducted from the death benefit.

Term insurance does not accrue cash value, so if it is canceled or lapses for nonpayment of premium it terminates, coverage ends.

Guaranteed Surrender Value = (Total premiums paid excluding premium towards Service Tax, rider and underwriting extra, if any, less Accrued Fixed Regular Additions already paid x GSV Premium Factor) + (Cash value of Accrued Fixed Regular AdditValue = (Total premiums paid excluding premium towards Service Tax, rider and underwriting extra, if any, less Accrued Fixed Regular Additions already paid x GSV Premium Factor) + (Cash value of Accrued Fixed Regular Additvalue of Accrued Fixed Regular Additions)

Or you may wish to lock in a steady rate with a permanent life insurance policy, which accrues cash value, and pays a guaranteed death benefit, even if you live to be 100 years old.

Premiums can be flexible, and once you have accrued some cash value you can even use the cash value of the policy to make future premium payments if necessary.

If a financial advantage is your goal, a whole life policy offers options not available in term life, including the ability to withdraw or borrow against the accrued cash value of the policy.

Some permanent life policies also have a cash value that accrues over time, giving you a financial vehicle to draw from in later years if the needs arise.

Additionally, if the policy has an accrued cash value, any outstanding loans against the policy will be deducted before you receive the cash value.