Sentences with phrase «outstanding life insurance policy loans»

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.

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.

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..

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

HDFC Ltd. will speak to their partnered life insurance company (most likely HDFC Life) and give you a home loan insurance, i.e. a life insurance policy that will cover your loan to the extent of the outstanding principal as on date, i.e. Rs. 45 lalife insurance company (most likely HDFC Life) and give you a home loan insurance, i.e. a life insurance policy that will cover your loan to the extent of the outstanding principal as on date, i.e. Rs. 45 laLife) and give you a home loan insurance, i.e. a life insurance policy that will cover your loan to the extent of the outstanding principal as on date, i.e. Rs. 45 lalife insurance policy that will cover your loan to the extent of the outstanding principal as on date, i.e. Rs. 45 lakhs.

Q: Can an existing life insurance policy be used to provide for the repayment of an outstanding mortgage loan?

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.

This is why a life insurance policy with a loan lapses if the outstanding balance of the loan gets too close to the current cash value — in essence, it's just the insurance company foreclosing on the insurance policy collateral to pay off the loan before there's any possibility that the loan could go underwater.

In exchange for a series of premium payments or a single premium payment, upon the death of an insured person, the face value (and any additional coverage attached to a policy) minus outstanding policy loans and interest, is paid to the beneficiary of the life insurance policy.

Some permanent life insurance policies allow for loans against the insurance policy - in the case of any outstanding loans, the death benefit is paid to beneficiaries less any outstanding loan balance.

Purchase a term life insurance policy for at least the amount of your outstanding home mortgage loan.

The benefit is that your loved ones can remain in your home by using the proceeds you're your mortgage life insurance policy to pay off the outstanding loan on your mortgage should you pass away.

What you need to know is that if you were to die before the loan's outstanding principal and accrued interest are paid, the amount will be deducted from the death benefit of your life insurance policy.

If you have a $ 200,000 level term life insurance policy, and you die 10 years later with the balance of $ 140,000 still outstanding on the loan, the mortgage will be fully paid, and the remaining $ 60,000 will be paid directly to your beneficiaries.

Debt Payments The life insurance payout from a key man insurance policy can be used to pay any outstanding debts, bills, loans, or unforeseen expenses.