Sentences with phrase «out of the cash value»

Running out of cash value can be particularly bad if your cost of insurance is increased.

You are also able to take money out of your cash value as a tax - free loan.

If the policy has cash value, premiums can be paid out of the cash value.

If you're looking to supplement your retirement funds you can get a whole life or universal life insurance policy and also can take loans out of the cash value.

Surrender Charges: Many life insurance policies have surrender charges that come into effect which generally come out of the cash value itself.

Generally, the employer is reimbursed for its share of premium payments out of cash value or death proceeds, while the employee's beneficiaries receive the rest of the proceeds.

If you are going to be taking money out of your cash value make sure that you work with an agency such as us that understands how to do this properly.

The insurance company will then take the cost of insurance out of your cash value, and as long as there are sufficient funds, you no longer have to make premium payments.

The policy is paid for out of the cash value account, but the cost of the policy could rise or fall over time.

Usually there is a provision called the Automatic Payment Loan that takes money out of the cash value in a whole life policy to pay the premiums if you stop.

If you don't pay enough at the beginning, you might run out of cash value and won't be able to afford payments later on, causing your coverage to lapse.

Or, if money is suddenly tight, you may be able to forgo some premiums altogether, and in fact take money out of the cash value to meet immediate expenses.

Some states will require you to pay out of the cash value any amount you paid in during the last 12 months.

A less expensive policy option allows the company to pay the death benefit out of the cash value first; the more expensive option pays out both the full policy benefit and all the accrued savings.

Some plans allow you to pay for the premium out of the cash value, so that even if your finances are tight, you will not need to surrender the policy and allow your coverage to lapse.

Surrendering a policy may also come with additional administrative fees that will be taken out of the cash value as well.

A period of prolonged lower - than - expected interest rates could wipe out all of your cash value, and could leave you holding the bag monetarily to make up the difference, in order to keep the policy in force.

The policyholder is allowed to take money out of the cash value by either borrowing or withdrawing it — and this cash can be used for any purpose by the policyholder, including the payoff of certain debts, the supplementing of retirement income, and / or even for things such as taking a nice vacation.

If you have taken out the cash value (and your policy hasn't died because of it) and you die, then your family gets the death benefit less the amount of money you pulled out of the cash value.

• Flexibility Opting out of a term life policy is much easier than getting out of cash value policies.

Secondly, acknowledging than unpaid cash value loans can negatively impact the policy, should not the «savvy» investor attempt to get some leverage out of cash value that is just sitting there.

The cheaper one pays the death benefit out of the cash value of the policy first; so if you've saved up a lot then there is less that the company has to take care of.

The key thing to remember about a UL policy is to make sure you are putting in enough money each month where you can reasonably expect that it will never run out of cash value.

Some plans allow you to pay for the premium out of the cash value, so that even if your finances are tight, you will not need to surrender the policy and allow your coverage to lapse.

Or, if money is suddenly tight, you may be able to forgo some premiums altogether, and in fact take money out of the cash value to meet immediate expenses.

One true advantage of the whole term policy is that if you should fall on hard times and are not able to work, the premium payments can be taken out of the cash value.

While interest earned by the policy can offset this risk to some degree by significantly extending the length of time it takes for a policy to run out of cash value to pay premiums, if this does occur the consequences can be severe.

Running out of cash value can be particularly bad if your cost of insurance is increased.

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.

Ask the company about taking out some of the cash value (loan).

If you don't pay enough at the beginning, you might run out of cash value and won't be able to afford payments later on, causing your coverage to lapse.

While interest earned by the policy can offset this risk to some degree by significantly extending the length of time it takes for a policy to run out of cash value to pay premiums, if this does occur the consequences can be severe.

Usually there is a provision that is called the Automatic Premium Loan that takes money out of the cash value to pay premiums if you stop.

It took the payment that it already had (lost in house) out of the cash value and according to them that breached the firewall of death of the lifetime guarantee so the policy was now only guaranteed to age 99, not 121.