Sentences with phrase «means of a policy loan»

The insured, prior to death, can borrow some or all of the cash value by means of a policy loan.

Not exact matches

Between 2008 and 2012, the federal government implemented a handful of ad - hoc policies meant to deter poorer households from taking on excessive debt, including the reduction of the maximum amortization period for government - backed home loans to 25 years from 40 years.

This does mean that GUL policies are fairly limited in terms of how you pay for them because policy loans or late premium payments can nullify the guarantees.

That is, the study looks at whether borrowers with the means to repay their loans would opt not to in the absence of these policies (i.e., strategic default).

This means working to get the Board of Governors to reverse its policy that caps financial aid and instead challenging members to address student loan debt once and for all.

24 % of school libraries loan out ebook readers; about 50 % of schools have a one - to - one policy, which means that each student has his or her own tablet / device for at least part of a school day.

When the mortgage markets collapsed and the housing agencies started hemorrhaging cash, they instituted new fee policies known as Loan Level Pricing Adjustments (LLPA) and Adverse Market Delivery Charges (AMDC) as a means to fix their balance sheets on the backs of homeowners that were still able to obtain loans.

When the size of the loan exceeds your policy's cash value, the life insurance policy will lapse, meaning you lose your coverage.

Instead of «loan life insurance,» why not consider a general life insurance policy, which can provide your family a means to handle any of your remaining debts and expenses when you pass; rather than being applied to only one specific loan, general life insurance can be used for any expenses your family needs.

Dear Prakash, Even after making him as co-owner of the property, bank denies giving home loan means then it could be based on the specific bank's policies and underwriting rules.

The required privacy policy disclosure will be provided within 3 business days after the consumer's completed written loan application is received by us by any of the various means allowed by law.

What this means for your child is that if they are in need of student loans or other type of government aid, any cash value in his or her policy will not be taken into account when determining their eligibility for such aid.

This does mean that GUL policies are fairly limited in terms of how you pay for them because policy loans or late premium payments can nullify the guarantees.

It simply means that the policy will continue perform normally, including the payment of dividends at FULL rates, regardless of the amount policy loans owed.

That means you could possibly increase, decrease, or even skip a payment depending on such factors as the amount of premium you have paid into the policy, its cash value, and any policy loans or withdrawals that you may have taken.

If you don't have gap insurance policy in place, it means that you will need to pay the $ 3,000 balance out of your pocket in order to fully pay the loan balance.

That means your money is working for you in two places at once: in your policy and in your investment vehicle of choice that you used your policy loan to purchase.

Mortgage death insurance is a life insurance policy that provides death benefits meant to pay off the outstanding balance on a home mortgage loan in the event of the insured person's death.

This does mean that GUL policies are fairly limited in terms of how you pay for them because policy loans or late premium payments can nullify the guarantees.

This means that you can take out a loan for your children's education against the cash value of your permanent life insurance policy.

However, this «non-forfeiture value» of a life insurance policy has an important secondary benefit as well — it gives an insurance company the means to provide policyowners a personal loan at favorable interest rates, because the cash value provides collateral for the loan.

These policies have an investment element, meaning that some of the money can be invested in the stock market or taken out as a cash loan, so you still have the option to access the money while you're still alive.

Even with this type of car insurance, the insurance company may only pay a depreciated amount which means you will need an additional rider on the policy called GAP insurance to pay for the difference between cash value and the amount owed on the loan.

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.

For instance, many policies today provide that the policy loan interest rate is simply the current crediting rate plus a «spread» of 0.5 % to 1 % — which on top of low crediting rates like 3 %, means the loan interest rate might be as little as 4 %.

The virtue of engaging in a life settlement is that in some cases, the buyer will pay more than «just» the remaining net cash value surrender after repaying the loan, which means the person who was going to let the policy go anyway simply gets more cash in his / her pocket.

Notably, depleting the cash value with a withdrawal may mean the policy will still ultimately need another contribution (i.e., more premiums) to sustain in the long run; nonetheless, if the cash value is in a downward spiral towards lapse anyway, a withdrawal to repay the loan will help extend the life of the policy, given that the crediting rate of the cash value is always lower than the interest rate of the loan compounding against it (which for newer policies might be a 0.5 % to 1 % spread, but on older policies can be a 2 % spread or more).

In other words, technically when a life insurance policy loan occurs, the death benefit is not actually reduced (which means the cost - of - insurance charges don't decline for any reduction in the amount - at - risk to the insurance company); instead, the insurance company simply recognizes that any final death benefit to be paid will be reduced first by the repayment of the loan balance.

It simply means that the policy will continue perform normally, including the payment of dividends at FULL rates, regardless of the amount policy loans owed.

This means that all rights of the policy are transferred to the lender, and the loan is sanctioned to the borrower thereafter.

Which means that they should be able to qualify for a 10 - 30 year term life insurance policy to cover student loan debt of let's say $ 100,000 to $ 250,000 for less than $ 20.00 a month.

Another fact is that, owners who borrow from the cash value of the policy by means of loans do not have to pay income tax.

An «Endowment at 65» policy means that the total death benefit of the policy (minus any loans and interest) will be paid to the owner of the policy when the insured turns 65.

The collateral for your policy loan is the death benefit, which means that if you should die before repaying the loan the death benefit will be reduced by the amount of the outstanding loan.

Being a better value means that the policy maintains the entire death benefit for the duration of the policy, regardless of the loan value.

Loan Leverage Key man policies are considered assets by lenders, which means they help improve the overall credit worthiness of a business.

Meaning - if you're going to pay that money back to your life policy, factor it into your calculations as a loan instead of cash.

• Reverse a policy made in a prior Administration to cancel required premium payments after a certain period that effectively meant that while FHA's 100 % insurance guarantee remained in effect for the 30 - year life of a loan, borrowers were only required to pay premiums for less than ten years.