The amount of your benefit will also be reduced by
any outstanding loans against your policy.
These annual dividends may be reduced if there is
an outstanding loan against your policy.
If it was a whole life or other permanent policy,
any outstanding loans against the policy's cash value would be subtracted as well, Graham says.
Additionally, if the policy has an accrued cash value,
any outstanding loans against the policy will be deducted before you receive the cash value.
Not exact matches
Keep in mind that
loans against the
policy will accrue interest and decrease both death benefit and cash value by the amount of the
outstanding loan and interest.
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.
It is possible to take out a
loan against a
policy's cash value, however, if the
loan remains
outstanding this will decrease the death benefit.
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.
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.
Loans against the
policy accrue interest and decrease the death benefit and cash value by the amount of the
outstanding loan and interest.
Keep in mind that
loans against the
policy will accrue interest and decrease both death benefit and cash value by the amount of the
outstanding loan and interest.
Any cash value that may accumulate in your
policy can be withdrawn or borrowed
against and used for any purpose (important note: any
outstanding loans or partial withdrawals that aren't paid back will reduce your
policy's death benefit)
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.
Any
outstanding loans against the cash value at the time of the
policy holder's death are deducted from the face value of the
policy.
Moreover, the amount is subject to any
outstanding loans on the
policy, such as an unpaid premium or a
policy loan taken earlier
against the
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.
Higher of Guaranteed surrender value or Special surrender value will be paid to you as Cash Surrender Value, after deduction of any
outstanding amount on the
policy (Policy Loan or any amount payable against your policy) and TDS * (if applic
policy (
Policy Loan or any amount payable against your policy) and TDS * (if applic
Policy Loan or any amount payable
against your
policy) and TDS * (if applic
policy) and TDS * (if applicable).
Policyholders who have borrowed
against their
policies may receive reduced annual dividends while the
loan is
outstanding.