Sentences with phrase «outstanding loans on your policy»

Any outstanding loans on your policy will reduce your death benefit accordingly.

However, if insufficient dollars go into the policy to sustain the cash value, the policy can lapse... and if there's an outstanding loan on the policy, it will just lapse even faster (when the cash value dips down to the loan balance, as opposed to needing to go all the way to $ 0 to lapse).

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.

Not exact matches

Outstanding loans and withdrawals, however, will reduce policy cash values and the death benefit, and may have tax consequences, so talk with your agent about the pros and cons before taking a loan out on your policy.

On the other hand, if you've just purchased a home with your spouse, you might consider a decreasing term policy (since your mortgage balance decreases over time as you pay it off) with a death benefit equal to the size of your outstanding loan.

Even if there is an outstanding policy loan, AUL continues to pay the same dividend on the cash value.

When there is an outstanding policy loan, Ameritas pays the dividend based on the cash value that is not being used as collateral for the 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..

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.

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.

If you do have a loan outstanding on such a policy at the time of your death, this loan reduces the benefit amount to a beneficiary.

This insurance policy is specially designed to help creditors avoid bad debts by taking care of any outstanding balance should a borrower pass on, or be unable to repay a loan in full.

Non-Direct Recognition: Non-direct recognition simply means the company does not recognize an outstanding policy loan when determining interest and dividend paid on your policy's cash value.

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.

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.

Indebtedness Policy indebtedness is all outstanding loans on an insurance policy, including any unpaid intPolicy indebtedness is all outstanding loans on an insurance policy, including any unpaid intpolicy, including any unpaid interest.

If cash is borrowed from the policy, interest will accrue on the outstanding loan balance.

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.

It's important to note that if you were to die unexpectedly, any outstanding loan balance remaining on your whole life policy may be deducted from your death benefit and will accrue interest.

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.

Outstanding loans and withdrawals, however, will reduce policy cash values and the death benefit, and may have tax consequences, so talk with your agent about the pros and cons before taking a loan out on your policy.

If the policy lapses, taxes would be due on 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..

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.

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.

That way you continue to earn interest crediting on your cash value, even with an outstanding policy loan.

This type of policy is required on any vehicle that has an outstanding loan.

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.

Policy indebtedness is all outstanding loans on an insurance policy, including any unpaid intPolicy indebtedness is all outstanding loans on an insurance policy, including any unpaid intpolicy, including any unpaid interest.

When a policy lapses, any outstanding loans are treated as cash value distributions and subject to taxation on any amount in excess of the policy basis.

«Hence, in case of accidental death of any Home / Car loan borrower on or before July 1,2013, claims may be lodged for the outstanding amount in the loan account subject to the terms and conditions mentioned in Master Policy,» SBI said.

The combination of an increasing loan balance and deductions for contract charges and fees may cause the policy to lapse, triggering ordinary income tax on the outstanding loan balance to the extent it exceeds the cost basis in the policy.

The good news is borrowed amounts from non-MEC policies are not taxable, and you don't have to make payments on the loan, even though the outstanding loan balance might be accruing interest.

If any top up premium shall be paid under the policy in which loan is availed of, the top up premium will be first adjusted towards outstanding loan and interest on outstanding loan, if any, and the balance available shall be invested in the fund (s) chosen by the policyholder after deduction of applicable charges.

The Insurance company does however charge interest on the outstanding policy loan but do not require payments to be made.

Often times as long as there is no loan outstanding on the policy, a withdrawal can be made up to the entire surrender value.

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 lakhs.

Or, if your policy lapses with outstanding loans, you'll be taxed on everything over the amount you put into the policy.

On discontinuance of premium, the fund value under the base policy (including top - ups) less applicable discontinuance charges less the outstanding loans along with interest will be switched to Discontinued Policypolicy (including top - ups) less applicable discontinuance charges less the outstanding loans along with interest will be switched to Discontinued PolicyPolicy Fund.

The actual sum may be higher or lower depending on the options selected, outstanding policy loans or premium owed.

On the other hand, if you've just purchased a home with your spouse, you might consider a decreasing term policy (since your mortgage balance decreases over time as you pay it off) with a death benefit equal to the size of your outstanding loan.

Even if there is an outstanding policy loan, AUL continues to pay the same dividend on the cash value.

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.

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.

Also, if the amount of the unpaid interest on your loan plus your outstanding loan balance exceeds the amount of your policy's cash value, your policy and all coverage will terminate.

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.

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 applicpolicy (Policy Loan or any amount payable against your policy) and TDS * (if applicPolicy Loan or any amount payable against your policy) and TDS * (if applicpolicy) and TDS * (if applicable).

Various Add - on covers are available to enhance policy coverage on payment of additional premium which are Accidental Hospitalization Expenses, Accidental Hospital Daily Cash, Child Education Support Benefit, Life Support Benefit, Loan Protector, Broken Bone Modification of Vehicle / Residence, Family Transportation Benefit, Outstanding Bills Protection Benefit, Ambulance Hiring Charges, Legal Bail Expenses and Double Indemnity.

Some exceptions to this rule that I can think of will be things like unpaid premium / s, loans outstanding, interest on such loans 4) In case the life insured and nominee die at the same time, the policy money will go to the legal heir.