Sentences with phrase «into a life insurance contract»

My recommendation was to dollar cost average $ 94,839 annually out of his investment portfolio that was earning 1 percent in short - term treasuries, 5 percent in bonds, and -20 percent to +20 percent in the stock market into a life insurance contract to control a potential $ 4 million life insurance benefit.

In reality, what started as an annuity account quickly turned into a life insurance contract due to a substantially higher death benefit.

For example, if a life assured is suffering from an elevated blood pressure, he is duty bound to mention this fact at the time of entering into a life insurance contract.

When someone puts money into a life insurance contract for the purpose of growing their cash value, then the goal is actually to buy as little life insurance as possible.

No insurance company can lock you into a life insurance contract for any period of time.

As of June 21st of 1988, the federal government placed into effect the Technical and Miscellaneous Revenue Act (TAMRA), which placed limits on the amount of money that can be put into a life insurance contract during the first 7 years of the policy's existence.

Tamra sought to end this tax loophole by limiting the amount of money dumped into a life insurance contract.

An owner can still put a significant amount of money into a life insurance contract, have it grow tax deferred until death of the insured, and pass on a significant amount of money to the next generation free of taxes.

Not exact matches

With an annuity, however, you enter into a contract with an insurance company to pay a certain amount for the rest of your life, giving you the peace of mind that comes from knowing your income will never run out.

After entering into a contract with an insurance company, an investor can receive regular payments for a fixed period of time or for life.

Notably, a life insurance contract can be rolled into an annuity but NOT the other way around.

Whereas, a life insurance contract is an asset that is designed (at least traditionally) to provide a death benefit to one's estate, an annuity is centered around converting a lump sum payment (or series of payments) into a stream of income for a fixed period (usually for life).

Front - end loads are assessed as a percentage of the total investment or premium paid into a mutual fund, annuity or life insurance contract.

Limited pay life insurance is a life insurance contract between you (the owner / insured) and the carrier (the insurer), for the benefit of the beneficiary, that requires you to pay into the policy for a set period of time.

FedEx Corp. announced today it has entered into an agreement with Metropolitan Life Insurance Company to purchase a group annuity contract and transfer approximately $ 6 billion of the company's U.S. pension plan obligations.

Universal Life Insurance: A type of permanent life insurance that combines term life insurance and an investment feature into one contrLife Insurance: A type of permanent life insurance that combines term life insurance and an investment feature into one Insurance: A type of permanent life insurance that combines term life insurance and an investment feature into one contrlife insurance that combines term life insurance and an investment feature into one insurance that combines term life insurance and an investment feature into one contrlife insurance and an investment feature into one insurance and an investment feature into one contract.

The policy will go into effect once you sign the contract, return it to the life insurance company and make your first premium payment.

Converting a term policy over into a permanent form of coverage can allow an insured to obtain life insurance protection for life — regardless of future age increases and the possibility of contracting an adverse health condition.

The IRS has determined that if too much cash is paid into a policy at once, a Modified Endowment Contract (MEC) is created and the tax advantages of the permanent life insurance policy can be lost.

One of the primary advantages to limited pay life insurance is that you no longer have to pay into your policy once the contracted payment duration has been met.

Whole life insurance has more guarantees built into the contract and are a great way to be your own banker.

Whole life insurance defined: A whole life policy is a type of permanent life insurance where a contract is entered into between the policy owner and insurer, for a policy, which covers the life of the insured, for a specified insurance coverage amount, for the benefit of a beneficiary.

The money that is used to purchase the contract is placed into an escrowed trust account — typically an irrevocable trust — and that money makes premium payments to keep the life insurance policy in force until the insured dies.

This can be circumvented by buying term life insurance in your prime and negotiating it into your contract.

A contract sold by a life insurance company in which an insured makes contributions into a fund that can then be withdrawn in a lump sum or a series of future payments.

When you purchase life insurance, you enter into a contract with a life insurance company that agrees to pay a death benefit to your beneficiary, which can be your spouse, children or anyone you choose.

Avoid Modified Endowment Status: If the subsequent premiums paid into the new policy, other than the exchange proceeds, are within the new 7 - pay limit, then a 1035 Exchange of a life insurance policy allows the policy owner to place the original contract's entire value in the new policy without creating a modified endowment contract, or MEC.

These policies were not in their best interest, they weren't explained, and they locked the life insurance shopper into a long - term contract they did not understand.

You enter into a contract with your policy holder (the life insurance company) and pay a premium each month to keep the policy valid.

The other barrier to the beginning life insurance industry was the legal restrictions that barred women from entering into contracts, including insurance policies, or even legally inheriting an estate.

Most guaranteed level term life insurance policy contracts are divided into five - year increments, with the shortest lasting five years and the longest at 30 years.

Universal Life Insurance: A type of permanent life insurance that combines term life insurance and an investment feature into one contrLife Insurance: A type of permanent life insurance that combines term life insurance and an investment feature into one Insurance: A type of permanent life insurance that combines term life insurance and an investment feature into one contrlife insurance that combines term life insurance and an investment feature into one insurance that combines term life insurance and an investment feature into one contrlife insurance and an investment feature into one insurance and an investment feature into one contract.

It's important to note that no life insurance company can lock you into a contract where you are forced to continue paying your premiums.

A life insurance policy is an exchange of promises When you purchase life insurance, you and the insurance company enter into a contract in which you each make important promises.

Over time, less premium will be paid into a whole life contract when compared to an annual renewable term life insurance policy because the whole life insurance uses premium plus investment interest to hold down the cost of insurance and the annual renewable term does not.

The policy will go into effect once you sign the contract, return it to the life insurance company and make your first premium payment.

Individuals who obtain a term insurance policy enter into a contract with the life insurance carrier that guarantees a specified death benefit in exchange for a specified level premium throughout the term of the contract.

Individuals who are insured under a life insurance policy, a pension or other annuity product that carries a death benefit enter into a contract with a life insurance carrier at the time of application.

Since minors can't enter into insurance contracts, juvenile life insurance policies can only be purchased by an adult with insurable interest.

An individual who enters into a whole life insurance contract with an insurance carrier agrees to a specified death benefit amount in exchange for a fixed level premium.

These are: • Life insurance contract - a contract regarding life insurance policies that meets the guidelines premium requirements, the cash value accumulation and falls into the cash value corridor all on the subsectLife insurance contract - a contract regarding life insurance policies that meets the guidelines premium requirements, the cash value accumulation and falls into the cash value corridor all on the subsectlife insurance policies that meets the guidelines premium requirements, the cash value accumulation and falls into the cash value corridor all on the subsection.

You can buy permanent life insurance (which combines elements of insurance and savings into one contract), you can buy term insurance (which is pure death benefit protection) and use some other financial product to help you accumulate savings (e.g. mutual funds inside a 401 (k)-RRB-, or you can buy permanent insurance and also buy other financial products, like stocks, mutual funds, real estate or anything else you think would make you money.

Any withdrawals taken from a life insurance contract are tax free up to the total amount of the cost basis (the amount of money put into the policy) with the gain being considered the last part of the contract to be withdrawn for tax purposes (FIFO accounting).

The IRS has determined that if too much cash is paid into a policy at once, a Modified Endowment Contract (MEC) is created and the tax advantages of the permanent life insurance policy can be lost.

Because whole life insurance has so many features and options in addition to the death benefit, it is extremely important to understand the illustration fully before entering into a whole life insurance contract.

One of the primary advantages to limited pay life insurance is that you no longer have to pay into your policy once the contracted payment duration has been met.

The maximum amount of money that can be accepted into either a life insurance contract or a modified endowment contract is still limited by guideline premium limits, another limit placed by the federal government to avoid excessive use of this tax benefit.

The money that is used to purchase the contract is placed into an escrowed trust account — typically an irrevocable trust — and that money makes premium payments to keep the life insurance policy in force until the insured dies.

Whole life insurance defined: A whole life policy is a type of permanent life insurance where a contract is entered into between the policy owner and insurer, for a policy, which covers the life of the insured, for a specified insurance coverage amount, for the benefit of a beneficiary.

The small life insurance contracts had a small cost of insurance, and could still accumulate significant gain based on the dividend payments made into the policy by the insurance company (dividend payments grow larger as cash value is higher).