Sentences with phrase «of cash value in the policy»

In a similar fashion, if you have $ 50,000 of cash value in your policy, and you choose to get a $ 25,000 policy loan, the dividends paid to the policy will still grow on the total amount of $ 50,000.

While some of the cash value in the policy may be protected by bankruptcy laws, any amounts that exceed the protection limits can be seized by the court.

Under these circumstances, the insurer may offer a guarantee of death benefit coverage regardless of the cash value in the policy provided that you pay a set minimum premium payment.

Potentially faster rate of accumulation of cash value in your policy compare to other types of policy; and 2.

Unless you have had the policies for a very long time, or unless you have been making extra premium payments, the amount of cash value in the policies is likely to be low.

Whole life insurance dividends are paid out at a determined rate based upon the amount of cash value in a policy.

Of course, changing the premium or withdrawing part of the cash value in your policy will affect the rate at which your cash value accumulates.

Because whole life premiums in the early years are higher than the actual cost of insurance, the build - up of the cash value in the policy reduces the risk to the insurance company, allowing for lower premiums in later years than would be paid in a term life policy.

However, more and more advisors are incorporating riders that dramatically accelerate the growth of the cash value in the policy, especially in the early years of the policy.

This is the amount of cash value in the policy accumulation account minus any outstanding loans etc..

Not exact matches

The same follows for annuities and the cash value in your life insurance policy, said David E. Hultstrom, co-founder of Financial Architects in Woodstock, Georgia.

Such risks, uncertainties and other factors include, without limitation: (1) the effect of economic conditions in the industries and markets in which United Technologies and Rockwell Collins operate in the U.S. and globally and any changes therein, including financial market conditions, fluctuations in commodity prices, interest rates and foreign currency exchange rates, levels of end market demand in construction and in both the commercial and defense segments of the aerospace industry, levels of air travel, financial condition of commercial airlines, the impact of weather conditions and natural disasters and the financial condition of our customers and suppliers; (2) challenges in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; (3) the scope, nature, impact or timing of acquisition and divestiture or restructuring activity, including the pending acquisition of Rockwell Collins, including among other things integration of acquired businesses into United Technologies» existing businesses and realization of synergies and opportunities for growth and innovation; (4) future timing and levels of indebtedness, including indebtedness expected to be incurred by United Technologies in connection with the pending Rockwell Collins acquisition, and capital spending and research and development spending, including in connection with the pending Rockwell Collins acquisition; (5) future availability of credit and factors that may affect such availability, including credit market conditions and our capital structure; (6) the timing and scope of future repurchases of United Technologies» common stock, which may be suspended at any time due to various factors, including market conditions and the level of other investing activities and uses of cash, including in connection with the proposed acquisition of Rockwell; (7) delays and disruption in delivery of materials and services from suppliers; (8) company and customer - directed cost reduction efforts and restructuring costs and savings and other consequences thereof; (9) new business and investment opportunities; (10) our ability to realize the intended benefits of organizational changes; (11) the anticipated benefits of diversification and balance of operations across product lines, regions and industries; (12) the outcome of legal proceedings, investigations and other contingencies; (13) pension plan assumptions and future contributions; (14) the impact of the negotiation of collective bargaining agreements and labor disputes; (15) the effect of changes in political conditions in the U.S. and other countries in which United Technologies and Rockwell Collins operate, including the effect of changes in U.S. trade policies or the U.K.'s pending withdrawal from the EU, on general market conditions, global trade policies and currency exchange rates in the near term and beyond; (16) the effect of changes in tax (including U.S. tax reform enacted on December 22, 2017, which is commonly referred to as the Tax Cuts and Jobs Act of 2017), environmental, regulatory (including among other things import / export) and other laws and regulations in the U.S. and other countries in which United Technologies and Rockwell Collins operate; (17) the ability of United Technologies and Rockwell Collins to receive the required regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the merger) and to satisfy the other conditions to the closing of the pending acquisition on a timely basis or at all; (18) the occurrence of events that may give rise to a right of one or both of United Technologies or Rockwell Collins to terminate the merger agreement, including in circumstances that might require Rockwell Collins to pay a termination fee of $ 695 million to United Technologies or $ 50 million of expense reimbursement; (19) negative effects of the announcement or the completion of the merger on the market price of United Technologies» and / or Rockwell Collins» common stock and / or on their respective financial performance; (20) risks related to Rockwell Collins and United Technologies being restricted in their operation of their businesses while the merger agreement is in effect; (21) risks relating to the value of the United Technologies» shares to be issued in connection with the pending Rockwell acquisition, significant merger costs and / or unknown liabilities; (22) risks associated with third party contracts containing consent and / or other provisions that may be triggered by the Rockwell merger agreement; (23) risks associated with merger - related litigation or appraisal proceedings; and (24) the ability of United Technologies and Rockwell Collins, or the combined company, to retain and hire key personnel.

By keying in a range of values for comparison, the user can determine the best inventory strategies or financing policies to increase a company's cash flow.

You would need to take advantage of the cash value of the policy or have it as a part of your estate plan in order for the investment to make sense.

Your life insurance net cash value is the «actual» surrender value of the policy, and you will typically find it listed separately in your life insurance statements.

A life insurance policy loan is just a loan from the insurer in which the cash value of your policy is used as collateral.

In addition if the loan, plus unpaid interest, exceeds the size of the cash value, your policy will lapse and you can lose your coverage.

¹ Access to cash values through borrowing or partial surrenders will reduce the policy's cash value and death benefit, increase the chance the policy will lapse, and may result in a tax liability if the policy terminates before the death of the insured.

Specifically, benefits subject to the HP Severance Policy include: (a) separation payments based on a multiplier of salary plus target bonus, or cash amounts payable for the uncompleted portion of employment agreements; (b) any gross - up payments made in connection with severance, retirement or similar payments, including any gross - up payments with respect to excess parachute payments under Section 280G of the Code; (c) the value of any service period credited to a Section 16 officer in excess of the period of service actually provided by such Section 16 officer for purposes of any employee benefit plan; (d) the value of benefits and perquisites that are inconsistent with HP Co.'s practices applicable to one or more groups of HP Co. employees in addition to, or other than, the Section 16 officers («Company Practices»); and (e) the value of any accelerated vesting of any stock options, stock appreciation rights, restricted stock or long - term cash incentives that is inconsistent with Company Practices.

If you work for a company that does not offer a qualified retirement plan (or does not offer a life insurance option in an existing plan) or if you have already contributed the maximum amount to your qualified retirement plan, a cash value insurance policy can offer some of the tax benefits of a qualified retirement plan.

Although the payment of the insurance premiums is not tax deductible, any increase in the cash value of the insurance policy due to investment gains is not taxed until you begin to withdraw the money after you retire.

In terms of taxation, the excess of the cash surrender value of the policy (plus any outstanding loans) over your basis in the contract is treated as taxable incomIn terms of taxation, the excess of the cash surrender value of the policy (plus any outstanding loans) over your basis in the contract is treated as taxable incomin the contract is treated as taxable income.

In later life stages, permanent life insurance may offer, depending on the type of policy, the opportunity to accumulate cash value on a tax - deferred accrual basis, money that can be used for diverse needs.

Had the individual purchased permanent life insurance, he or she could have access to a potentially significant source of supplemental retirement income in the future (depending on the policy type), while preserving the death benefit in perpetuity (note, however, that the death benefit and cash value of a policy is reduced in the event of a loan or partial surrender, and the chance of lapsing the policy increases).

Since the growth of your policy's cash value is tax - deferred, variable life insurance might be a good consideration if you've maxed out your retirement account contributions, have a sizable portfolio of more liquid assets (such as in your brokerage and savings accounts), and are looking for an additional investment vehicle that also offers coverage to your dependents should anything happen to you.

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.

However, given the complexity of the policy, the additional costs correlated with permanent life insurance policies, and the potential to lose the entirety of the account's cash value, it's not recommended if your primary intent is to provide financial coverage in the case of your death.

If a policy is cancelled, the insurance company no longer needs to keep the reserve to fund the policy in the later years, so it will refund to you the overpayment of premiums, called the cash surrender value.

In a nutshell, while most whole life insurance is fixated on maximizing the death benefit of a policy and just allowing cash values to grow over time, strategic self banking focuses on maximizing life insurance cash values, so the whole life insurance plan can be used strategically as a savings and personal financing vehicle for the purpose of recapturing your cost of capital incurred when having to deal with third party lenders or using your own cash.

Part of the strategy is to work with mutual life insurance companies that allow flexibility in borrowing from the policy and allow the cash value to accrue regardless of outstanding policy loans.

Naturally, a policy buyer would prefer the insured to be elderly, in poor health, with a policy that has low cash value and a high death benefit, because all of these factors might increase the buyer's yield - to - maturity on the policy when you die.

As in starting any other business, the cash value may not equal initial deposits for some time, however this will catch up as the policy is funded, with the help of paid - up additions.

A number of government agencies and private companies may want to know about the type of policy you have in place and its cash value.

Make sure the policy you choose has the coverage you need in terms of level premiums, death benefits and cash value when it matures.

In this case, the vast majority of homeowners and renters insurance policy forms, by default, will provide claim settlement only at the actual cash value of the personal property.

Policies such as variable universal life insurance combine components of the above, blending the investment flexibility of variable life with the ability to use the cash value to pay monthly premiums offered in universal life.

A policy might replace or pay a rider the cash value of their stolen motorcycle, but that could mean an increase in the cost of premiums for a coverage that is already expensive relative to standard motorcycle insurance policies.

A life insurance policy loan is just a loan from the insurer in which the cash value of your policy is used as collateral.

This may ultimately consume all of the cash value in the insurance policy.

Short of simply cancelling these policies for the cash values in them at present, are there any strategies which might rescue those policies at this late date?

Universal life insurance is similar to whole life insurance in that a portion of your monthly premiums go toward a savings component of the policy, called the «cash value.»

Your life insurance net cash value is the «actual» surrender value of the policy, and you will typically find it listed separately in your life insurance statements.

The cash value generally grows slowly in the first few years of the policy then experiences more significant growth later.

On the other hand, if your company decides to sell the key person life insurance policy, you may have to pay taxes, depending on the size of the settlement, cash value of the policy, and the amount that's been paid in premiums.

Later on, if you do particularly well in your professional life, you can convert the policy to take advantage of the cash value benefits.

If they are destroyed in a fire, your homeowners insurance policy might only provide cash value, meaning that you would only be reimbursed what those items are worth today, not what it would actually cost you to buy new versions of them.

Although there are benefits to all types of coverage, and each policy has its place, in our opinion there is a clear advantage of cash value life insurance vs term life.

The only qualification is that you have the amount of money in cash value within the policy.

Your policy's cash value may go up or down based on the performance of the market you are invested in.