Sentences with phrase «of lapsing the policy increases»

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).

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).

Not exact matches

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.

While the cash value feature is an attractive option it's important to remember, though, that tapping into the cash value of a life insurance policy reduces its value and death benefit and increases the chance the policy will lapse.

This improvement of $ 2.1 billion was primarily due to somewhat better - than - expected economic conditions and an increase in the lapse ($ 3.2 billion) partially offset by provisions for anticipated Cabinet decisions ($ 0.9 billion) and the impact of new policy initiatives proposed in the March 2017 Budget ($ 0.3 billion).

Also, tapping into the cash value of a life insurance policy reduces its value and death benefit and increases the chance the policy will lapse.

Skipping or reducing payments may increase the chance of the policy lapsing, and could mean you'll need to increase the premiums in the future.

If the cash value is not enough to offset the rising cost of insurance the possibility of the policy lapsing increases dramatically.

But keep in mind that loans from a life insurance policy will reduce the policy's cash value and death benefit, could increase the chance that the policy will lapse, and might result in a tax liability if the policy terminates before the death of the insured.

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.

Also, tapping into the cash value of a life insurance policy reduces its value and death benefit and increases the chance the policy will lapse.

While the cash value feature is an attractive option it's important to remember, though, that tapping into the cash value of a life insurance policy reduces its value and death benefit and increases the chance the policy will lapse.

Other reasons that customers with good credit may be more desirable include the increased likelihood that they will pay off the entire policy premium, and the decreased odds of them letting their policy lapse.

Loans with UL policies greatly increase the risk of policy lapses.

With permanent life insurance coverage, though, as long as you don't let your policy lapse, your premiums are guaranteed not to increase for the rest of the owner's life.

The combination of an increasing loan balance and deductions for contract charges and fees may cause the policy to lapse, triggering ordinary income tax on the outstanding loan balance to the extent it exceeds the cost basis in the policy.

1Loans or partial withdrawals can reduce the policy's cash value and death benefit, can increase the possibility of policy lapse, and may result in a tax liability.

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

The benefit of a Guaranteed No Lapse Universal Life is that the rate is guaranteed never to increase and the policy can not lapse like some other ULs.

The bottom line, though, is that in today's low - return environment, not wanting or needing permanent life insurance anymore — whether due to a change in estate planning needs because of the increased - and - now - portable $ 5.25 M estate tax exemption, or a general change in needs and circumstances, or a policy that is in danger of lapse due to underperformance — is not necessarily a reason to cancel it.

In other situations, though, the policy may have an outstanding loan, which potentially undermines the internal rate of return (as loan interest compounds) and can increase the risk that the policy lapses (which in the case of a policy with a loan can trigger a taxable event, in addition to lapsing the policy itself!).

If your policy lapses (for any type of policy), you'll not only face potential rate increases if you reapply, but you'll also no longer be eligible to receive the death benefit, which is the whole goal of life insurance in the first place.

Access to cash values through borrowing 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.

Also, loans and withdrawals reduce the face amount of the policy and increase the chance a policy may lapse.

If the cash value is not enough to offset the rising cost of insurance the possibility of the policy lapsing increases dramatically.

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This increases the risk of the loan amount exceeding the policy's cash value, which can cause for the policy to lapse.

Skipping or reducing payments may increase the chance of the policy lapsing, and could mean you'll need to increase the premiums in the future.

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If the loan balance increases the amount of the cash value, your policy could lapse and risk termination by the insurance company.

Such No Claim Bonus leads to increase in the sum assured, but the lapse of policy can lead to loss of all the accumulated No Claim Bonus

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If the policyowner does not increase their premium down the road, the policy will most likely lapse because of being underfunded.