Sentences with phrase «loan against the death benefit»

A simple case: Suppose the combination product is a life insurance policy that provides a loan against the death benefit if you enter a nursing home or have a serious illness.

Not exact matches

Keep in mind that if you've borrowed against the cash value of your policy and pass away, the loan will be deducted from the policy's death benefit.

You can borrow against the cash value, but unpaid policy loans and interest will be subtracted from your death benefit.

If you die within the term and there is a loan against the policy, your beneficiaries will receive the death benefit minus the loan plus interest.

Keep in mind that loans against the policy will accrue interest and decrease both death benefit and cash value by the amount of the outstanding loan and interest.

You can also borrow the funds or take a loan out against the cash accumulation portion, although this canreduce the amount of death benefits payable from the policy.

If there are any loans against the life policy, then these amounts will reduce the face value of the death benefit when the insured passes away.

If you borrow against an existing policy to pay premiums on a new policy, death benefits payable under your existing policy will be reduced by the amount of any unpaid loan, including unpaid interest.

You policy loan and any accrued but unpaid interest go against the death benefit.

Loans taken against the policy are not taxed, nor is the death benefit taxed when received by your beneficiaries.

It is possible to take out a loan against a policy's cash value, however, if the loan remains outstanding this will decrease the death benefit.

If, however, a policyholder does remove cash from the policy — regardless of whether it is through a withdrawal or a loan — any unpaid balance will be charged against the death benefit proceeds.

It is important to note, however, that even though a withdrawal or a loan is not required to be paid back, if there is an unpaid balance in the cash - value component of the policy at the time of the insured's death, then the amount of that balance will be charged against the death benefit that is paid out to the policy's beneficiary.

It is important to note, though, that any unrepaid loan or withdrawal will be charged against the death benefit if the insured dies before the funds have been repaid.

The loan accrues interest while the insured is living and is deducted against the remaining death benefit at the insured's death.

(It is important to note, though, that any unpaid loan balance at the time of the insured's death will go against the amount of the death benefit that is paid out to the policy's beneficiary).

You can also borrow the funds or take a loan out against the cash accumulation portion, although this canreduce the amount of death benefits payable from the policy.

As with whole life insurance, you may be able to take loans against the cash value of a universal life policy, however the death benefit and cash value will be reduced by the amount of any outstanding loans and interest upon your death.

Loans against the policy accrue interest and decrease the death benefit and cash value by the amount of the outstanding loan and interest.

Keep in mind that loans against the policy will accrue interest and decrease both death benefit and cash value by the amount of the outstanding loan and interest.

Any cash value that may accumulate in your policy can be withdrawn or borrowed against and used for any purpose (important note: any outstanding loans or partial withdrawals that aren't paid back will reduce your policy's death benefit)

[4] This is why most people choose to take cash values out as a «loan» against the death benefit rather than a «surrender.»

How much cash value a whole life insurance policy can build depends on such factors as your age, how long you've owned the policy, the policy's coverage amount (death benefit), and whether there's any outstanding debt from loans against the policy.

A policy owner who takes a loan against the available cash value may choose to pay back the loan with interest, or to have the amount owed deducted from the death benefit at the time of payout, or to surrender the policy and have the amount owed deducted from the available cash value.

Both types allow for tax deferment of the cash value account and allow for loans against the cash value; however, whole does not provide you the ability to increase or decrease the death benefit as you financial needs change throughout life.

Of course, taking money against the policy will reduce the death benefit but this isn't a problem if your needs have adjusted, your policy accrues interest greater than your loan, or you have the ability to repay the loan.

While a permanent policy's cash value can be borrowed against to help with expenses such as retirement or college tuitions, the loans can reduce the death benefit and cash value of the policy and the loan interest may be charged on the amount borrowed.

You have to borrow against your own money and double your interest rate that you get in return, they have up to 6 months to give you a loan again which is your money in the first place, when they pay out the benefit of the insurance they only get the death benefit or the cash value but if there's a loan taken out of the cash value that gets subtracted as well as the interest rate on the loan.

Upon the death of the insured, the death benefit will be reduced by the value of the lien against the policy and any unpaid loan and loan interest.

You can withdraw your cash value or take out a loan against it, but remember, if you die before you pay back the loan, the death benefit paid to your beneficiaries will be reduced.

While not to take the place of a savings account, some permanent insurance products have a cash value component that accumulates interest which can be used, via surrendering the policy or borrowing against it, for future expenses such as medical bills; however, the value grows more slowly than a typical investment plan and if you don't repay the policy loans with interest, your death benefit will be reduced.

However, it is important to note that any unpaid loan balance at the time of the insured's passing will be charged against some death benefit proceeds that are paid out to the beneficiary.

However, it is important to know that any unpaid loans will go against the death benefit.

Furthermore, the death benefit is fixed, minus any outstanding loans against the cash value account.

You can borrow against the cash value, but unpaid policy loans and interest will be subtracted from your death benefit.

If you die within the term and there is a loan against the policy, your beneficiaries will receive the death benefit minus the loan plus interest.

1Policy loans and withdrawals will reduce available cash values and death benefits, and may cause the policy to lapse or affect any guarantees against lapse.

Unpaid policy loans and accrued interest count against your total death benefit or surrender value at the time of claim or termination of the policy.

However, if you pass away while a loan is taken out against your policy, the remaining balance that you owe will be deducted from the death benefit your beneficiary receives.

A loan against your life insurance policy will decrease your death benefit.

The loan is charged against your death benefit.

Be advised that when you take a loan out against your life insurance policy, the loan is subject to a market value interest rate and it also can reduce the amount of the death benefit as well as the amount of the cash value.

The cons whole life insurance policyholders face is the decrease in the death benefit or face value in slow economic times or if a loan is made against it.

Moreover, the policyholder can take a loan against the paid - up additions or surrender their value for cash; however, either would reduce the death benefit and cash value.

1Policy loans will reduce the available cash value and death benefit and may cause the policy to lapse, or affect guarantees against lapse.

Some permanent life insurance policies allow for loans against the insurance policy - in the case of any outstanding loans, the death benefit is paid to beneficiaries less any outstanding loan balance.

It is also important to understand that the policy loan is not taken out of your death benefit, but borrowed against it, and the insurance company is using your policy as collateral for the loan.

In fact, if you do not repay principal even till maturity / death, LIC will automatically square off the outstanding loan amount against maturity / death benefit and pay the balance to you / your nominee.

NOTE: A loan is taken against the cash value of a policy, not the face value (death benefit).

For example, they can weigh your immediate financial need against the potential future impact of loan interest accumulation and a reduced death benefit.