Sentences with phrase «outstanding life insurance loan»

As a result, if a life insurance policy is surrendered to repay an outstanding life insurance loan, the net transaction can have tax consequences — not because the repayment of the loan is taxable, but because the surrender of the underlying policy to repay the loan may be taxable.

Now if you die with an outstanding life insurance loan, your loan and any interest due will be taken out of your death benefit.

Now if you die with an outstanding life insurance loan, your loan and any interest due will be taken out of your death benefit.

Not exact matches

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.

With a non-direct recognition life insurance company, the payment of dividends is NOT reduced or negatively impacted by outstanding policy loans.

Credit life insurance — This insurance pays off the outstanding balance of a loan or account.

If you have an outstanding loan on your whole life insurance policy when you die, the death benefit that is paid out to your beneficiary (or beneficiaries) will be reduced by the unpaid amount of..

To conclude on the amount of life insurance policy you should buy, I will say that you should endeavour not to go below the amount that will cover your funeral expenses, repayment of your outstanding mortgage or other loans and your family living expenses.

Suicide Clause: A life insurance policy provision that states if the insured dies by suicide within a certain period of time from the date of issue (usually two years) the amount payable would be limited to the total premiums paid minus any policy loans or outstanding premiums.

A person having a huge outstanding mortgage loan balance to pay will be required to take higher life insurance than someone with little or no mortgage balance to pay.

You need a life insurance policy that will cover outstanding balances, especially if a loved one is a co-responsible party on a loan, credit card, etc..

For example, say you purchased enough life insurance to cover your mortgage — as you made mortgage payments, the outstanding loan, and therefore your coverage needs, would decrease.

Upon your death, the life insurance proceeds are used to repay any outstanding loans.

It's important to note if you take out a loan on your whole life insurance policy and die while the loan is out, the death benefit may be used to pay back the outstanding amount, meaning your beneficiaries won't get the full amount.

The 401 (k) treatment of loans prohibiting sharing in gains is in direct contrast to the advantage of borrowing from a mutual company offering a participating whole life insurance policy which will continue to pay dividends at normal rates regardless of outstanding loans.

Non-direct recognition refers to a whole life insurance company that does NOT alter its dividend rates based upon outstanding loans taken by the policy owner against the policy cash value.

Term life insurance is a different kind of life insurance meant to provide financial protection for a set period of time — usually while you have dependents or outstanding debts that could be transferred to others such as student loans.

The amount of money paid or due to be paid when a person insured under a life insurance policy dies, after adjustments for any outstanding policy loans, dividends, paid - up additions or late premium payments (if applicable) are made.

If you are seeking protection to help pay for outstanding liabilities (i.e. loans, credit card debt, mortgages, car payments, etc...) or plan for the future family need of income or education at an affordable price, term life insurance makes for a great option.

Final expense life insurance can be used to pay off outstanding automobile loans, credit card debt, and other financial obligations.

Suicide Clause: A life insurance policy provision that states if the insured dies by suicide within a certain period of time from the date of issue (usually two years) the amount payable would be limited to the total premiums paid minus any policy loans or outstanding premiums.

Generally, the Association will not issue a new life insurance policy with an outstanding loan.

The good thing about a collateral assignment of a life insurance policy is that the proceeds will be used to pay off the outstanding balance on the loan, and the remaining will go to the estate or beneficiaries.

That's why it is so important to have mortgage life insurance protection on your home, at the right amount of coverage — which would be the amount of your outstanding mortgage loan — how much you owe on the mortgage today.

Assuming you can prove continued insurability, pay off the overdue premiums plus interest, and cover any outstanding loans against the cash value, some life insurance companies will let you reinstate a policy within a certain time period.

Direct Recognition: Direct recognition means the dividend paid to participating policyholders that have an outstanding loan on life insurance is adjusted or lowered.

Net Cash Surrender Value A life insurance policy's cash surrender value less any outstanding loans or surrender charges.

This policy provides life insurance policy plans that provide a cover on the outstanding loan amount so that your customers do not have to bear the burden of a loan in case an unexpected event strikes.

This assumes the policy qualifies as life insurance, is not a modified endowment contract, is not lapsed or surrendered with an outstanding loan.

Even if you're single or married without children, you could use a life insurance benefit to help your loved ones pay off your debts such as outstanding student loans and medical bills leftover when you die.

Before you purchase life insurance, add up your mortgage loan, student loans, business loans, and other outstanding loans.

However, any outstanding loan plus interest due will be taken out when the death benefit is paid to your life insurance beneficiary.

Your financial resources consist of any existing insurance policies, business and personal assets, pensions and annuities, and business income after subtracting your debts for outstanding mortgages, loans, living expenses and personal obligations to families and friends.

It's important to note if you take out a loan on your whole life insurance policy and die while the loan is out, the death benefit may be used to pay back the outstanding amount, meaning your beneficiaries won't get the full amount.

As with whole life insurance, you may be able to take loans against the cash value of a universal life policy, however the death benefit and cash value will be reduced by the amount of any outstanding loans and interest upon your death.

Term life insurance is a different kind of life insurance meant to provide financial protection for a set period of time — usually while you have dependents or outstanding debts that could be transferred to others such as student loans.

When you buy a decreasing term life policy (sometimes referred to as mortgage life insurance), the death benefit is typically matched with the outstanding balance on your home loan.

But most people don't need as much life insurance after they retire, when they don't have any dependents, their home is paid for, and they don't have any outstanding loans.

If you have an outstanding loan on your whole life insurance policy when you die, the death benefit that is paid out to your beneficiary (or beneficiaries) will be reduced by the unpaid amount of..

This is different than a standard life insurance policy required if you have an sba loan still outstanding.

Mortgage life insurance insures a loan secured by real property and usually features a level premium amount for a declining policy face value because what is insured is the principal and interest outstanding on a mortgage that is constantly being reduced by mortgage payments.

If you pass away during the term (duration) of your mortgage life insurance policy, the death benefit is paid to the person you choose (beneficiary) who can use the money to pay off your outstanding mortgage loan, and use any remaining money for any purpose, such as, living expenses, education, paying off credit cards, provide for your funeral and burial costs, etc..

How much cash value a whole life insurance policy can build depends on such factors as your age, how long you've owned the policy, the policy's coverage amount (death benefit), and whether there's any outstanding debt from loans against the policy.

Gains include all life insurance policy loans that are outstanding at the time of the surrender.

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.

You select an amount of life insurance equal to the outstanding balance owed on your home mortgage loan.

It is important to note here, though, that even though a life insurance policy loan is not required to be repaid, if the insured dies while there is still a balance outstanding, the amount of this balance — plus interest — will be subtracted from the total amount of death benefit proceeds that are paid out to the beneficiary.

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MailBag: Offering Insurance Solutions As An RIA, And How To Handle Life Insurance With An Outstanding Loan At Death

Important aspects to keep in mind when considering insurance include estimated total of final expenses (e.g. medical bills, burial costs etc.), total living expenses for all surviving family members, any outstanding loans (e.g. auto, credit cards), the unpaid balance on one's mortgage, expected costs for your children's education, the estate taxes, and any business maintenance costs.