Sentences with phrase «one's cash value account»

These are commonly referred to as cash value accounts.

These policies provide flexibility in premium amount and benefits as well as market rates of interest on cash value accounts and tax deferred accumulation.

Permanent life insurance policies may include cash value accounts, policy loans, surrender options / fees, etc..

A portion of your payment goes into a tax - deferred cash value account.

The concept of using life insurance to supplement retirement might seem foreign, but permanent life insurance cash value accounts can offer a variety of advantages in retirement.

Replacement cost coverage is more expensive than actual cash value because your policy will pay to restore your property to new should it be damaged, while actual cash value accounts for depreciation.

Actual cash value accounts for depreciation, so even if you cover all of your major items, you only receive compensation for their current value.

Additionally, cash value accounts typically grow very slowly.

Whole life insurance coverage can be utilized as an investment vehicle since future value is guaranteed and a portion of your premiums get placed into an tax - deferred cash value account.

And as with a universal life insurance policy, the funds in the IUL cash value account grows and can be accessed in the form of partial withdrawals or policy loans.

The companies claim that by picking up such insurance today, you are helping your children by getting them «lifetime» policies, especially if you sign up for those with cash value accounts.

Universal life insurance features a death benefit and cash value account like whole life, however it offers greater flexibility than whole life in two distinct ways.

The IUL cash value account is based on indexing which is usually derived from S&P 500 and few others.

Whole life, for example, offers benefits not available on term policies, such as a tax - advantaged cash value account that builds up inside the policy and the potential to receive dividends.

In essence you accelerate your own cash value accounts and recapture your own interest.

A Variable Universal Life cash value account fluctuates in conjunction with the chosen managed investment option, typically made of choices such as small cap, mid cap, large cap, emerging markets, etc..

Unlike 401ks or IRAs where a penalty typically applies to most 401k withdrawals before age 59 1/2, there is no such restriction on cash value accounts.

Dividends can be used to contribute to your whole life insurance cash value account, thereby increasing your cash value, which in turn increases the cash you get from dividends, which increases your cash value, which increases your cash from dividends, and on and on and on...

Whole life, for example, offers benefits not available on term policies, such as a tax - advantaged cash value account that builds up inside the policy and the potential to receive dividends.

The policyholder takes on the risk of the subaccount performance rather than the insurance carrier, creating a policy that is most appropriate for individuals who want to manage their own cash value accounts and risks associated with them.

Flexible universal life insurance allows the policyholders to pay the premiums by using the tax - deferred cash value account that the insurance comes with.

Variable survivorship universal life insurance: With this policy you can select a separate cash value account that is tied to the stock market.

Each time you make a permanent life insurance premium payment, a portion of the money goes into a cash value account, and this account grows at a rate specified by the policy.

What has often been overlooked are the benefits from the unconventional sources, both as additional sources of cash (for example, from one's cash value account or home equity loans) or as indirect non-cash contributions (such as the expenses covered by one's long - term insurance).

Each time you make a permanent life insurance premium payment, a portion of the money goes into a cash value account, and this account grows at a rate specified by the policy.

A variation of whole life, universal life, provides a savings element known as a cash value account.

Guaranteed tax deferred cash value growth provides that your policy's cash value account will continue to grow year after year.

Your cash value account will increase (or decrease) in step with the variable accounts you participate in.

There is no cash value account connected with term insurance.

Also, as permanent insurance, the cash value account in universal life grows tax - deferred and can be accessed by the policyholder in the form of loans or withdrawals, subject to any applicable policy provisions.

This is due to the ability of a policyholder, within limits, to select the amount of the premium that will be devoted to the policy's death benefit and the amount that will be contributed to its cash value account.

Thus, if the market fell 10 %, for example, your cash value account would not lose 10 %, but would instead realize a 0 % return for the year unless the policy offered a minimum yearly return guarantee.

As with other types of permanent insurance, you can access the cash value account in an IUL policy via withdrawals and loans.

With a number of ways to use the money that builds up in the cash value account, such as taking out a life insurance loan or paying insurance premiums, the flexibility these policies offer make them attractive to individuals looking to build up savings while at the same time securing insurance coverage providing leverage in the form of a death benefit payout.

As mentioned earlier, the whole life college savings plan is a cash value account AND a life insurance policy.

The cash value account earns a modest rate of interest, with taxes deferred on the accumulated earnings.

Variable life insurance, also called variable appreciable life insurance, provides lifelong coverage as well as a cash value account.

Thirty years after you purchase the policy, you're 55 years old, and your cash value account has grown to $ 500,000.

If there is sufficient cash value, a policyholder can stop paying premiums out - of - pocket and have the cash value account cover the payment.

In the early years of your policy, a larger portion of your premium is invested and allocated to the cash value account.

Most cash value life insurance policies require a fixed level premium payment, of which a portion is allocated to the cost of insurance and the remaining deposited into a cash value account.

Indexed Universal Life (IUL) is similar to Universal Life in most ways except in regards to how interest is credited to your policy's cash value account.

With these cash value accounts growing in the range of 4 % guaranteed, they have rewarded policyholders with highly competitive performance for policyholders.

Having said that, the ability of IUL to offer close to stock market - like returns in an insurance policy cash value account, combined with downside protection that typically prevents your account from suffering a loss even if the market declines, has made IUL policies very popular in recent years as an alternative to Wall St.

An indexed universal life insurance policy, aka IUL insurance, or simply IUL, is similar to traditional universal life (UL) in that it offers a death benefit and a cash value account that increases over time.

Dividend - paying mutual life insurance companies cash value accounts have offered returns that have exceeded those offered by most other cash or cash equivalent accounts in recent years.