Sentences with phrase «owner of one's policy»

As owner of the policy, you have complete control.
This is especially important for owners of policies with mutual life insurance companies, as the policy owners are also the owners of the company.
[2] The third party becomes the new owner of the policy, pays the premiums, and receives the full death benefit when the insured dies.
For all intensive purposes, you are no longer owner of the policy.
When the plan is bought, the child is a minor and can not be a legal owner of the policy.
The original owner of the policy is typically someone who is age 65 or older.
This means that the full amount of the proceeds are included in your estate, as if you had remained owner of the policy.
As owner of the policy, you have complete control.
The third party becomes the new owner of the policy, pays the premiums, and receives the full death benefit when the insured dies.
The person whose life is proposed to be insured in the application for life insurance and who becomes the legal owner of the policy, after it is issued.
The investor will then be the new beneficiary of the policy which has the responsibility to pay the mandated premiums and is responsible to collect the value of the policy once the real owner of the policy dies.
Ownership — Name yourself as owner of the policy so you retain rights of determining who is beneficiary and who can make any changes to the life insurance policy
Generally, the title owner of the policy is an individual but it could can also be a trust or business entity such as a corporation or an limited liability company if the circumstances warrant this strategy.
The child should be named the successor owner of the policy so that if the primary owner passes away, the policy bypasses the estate and is directly transferred to the child.
a lump sum payment you received on surrender of an insurance policy (for mortgage protection, terminal illness or a permanent injury occurring at work) where you are the original beneficial owner of the policy.
The proposer is the rightful owner of the policy during the minority of the life insured.
However, as owner of the policy, the child will become responsible for making the premium payments on the coverage at that time.
That means the insured individual's name and contact information will be made available to the new owners of the policy, who will track the insured person's health status from time to time.
Generally, the title owner of the policy is an individual but it could can also be a trust or business entity such as a corporation or an limited liability company if the circumstances warrant this strategy.
However, this means that if something happens down the line that causes the owner of a policy to not want their initial beneficiary to receive their death benefit (such as divorce), it'll still go to the beneficiary they chose during their application.
However, since you are no longer the owner of the policy, you won't receive a tax credit when the death benefit is eventually paid.
Even with permanent life insurance, the problem with the approach of cancelling one policy and starting a new one with a different life insurance company may cause the owner of the policy to pay penalties and taxes that would otherwise have been avoided.
And the parent or grandparent can be the owner of the policy and direct whether or not the funds can be accessed.
NOTE: Companies that offer IUL policies typically guarantee the owner of the policy a floor of 0 % with regard to the market index of their choice (frequently the S&P 500).
Since his sister pays the premiums on the life insurance policy, I assume she is the owner of the policy.
These dividends are categorized as return of premium to the owner of the policy, so they are not subject to taxation.
Since you are paying the premiums and are the owner of the policy, it is an asset that would be included in your estate.
As the owner of the policy, you have a contractual right to borrow from the carrier, with your cash value acting as collateral.
Owner: The owner of the policy is the party that enters into the binding legal contract between the owner and the insurer.
Then ask the representative who the owner of the policy is.
For instance, if a husband is the owner of a policy and his wife is the insured, with their son the beneficiary, the IRS may consider this an attempt to circumvent the gift tax and declare that the insurance death benefit proceeds are subject to taxes, with those taxes charged to the husband as the owner of the policy.
To get around this type of issue, one solution would be to make the husband both the owner of the policy and the person insured by the policy.
With this option, you, the insured / owner of the policy, choose how you want your life insurance beneficiary to receive the death benefit income payout.
Term life insurance is defined as a contract between the owner of the policy and the insurer, for a policy on the life of the insured, whereupon the insured's death, the insurer pays a lump sum death benefit to the beneficiary.
The policy is convertible term life insurance, which allows the owner of the policy to convert all or a portion of the coverage to whole life insurance coverage before the term policy expires or age 65.
The owner of the policy has a contractual right to borrow from the insurer, using your cash value as collateral for the loan, for anything you want to use the loan for.
The owner of the policy, the company, the insured and the beneficiary.
As the owner of the policy, you can also choose to pay the death benefit in installment payments to spread it out over a number of years.
The Additional Life Insurance Rider (ALIR) allows the owner of the policy to make increased premium payments in order to purchase additional participating paid up life insurance, increasing the policy's death benefit and cash value growth.
That is, you will no longer be considered as the owner of the policy thereby making IRS not to consider the insured amount as part of your estate.
The owner of the policy takes out the contract, called a policy, on the life of the insured for the benefit of a beneficiary.
Paid Up Additions Rider DEFINITION: A rider that allows the owner of the policy to make additional contributions to the life insurance policy, resulting in the addition of paid up life insurance.
In cases where the employer of your spouse is the owner of the policy on behalf of your spouse, and the beneficiary is you or the employer, any proceeds above the premiums paid are considered to be taxable income to the death benefit's recipient.
A rider that allows the owner of the policy to make additional contributions to the life insurance policy, resulting in the addition of paid up life insurance.
Under this scenario, the death benefit would be paid to the owner of the policy, and any gains would be subject to income tax.
The action of changing the owner of your policy may be simple, but the affects might be complicated tax-wise.
You also want to name yourself as the owner of the policy for two reasons.
If you are the owner of your policy, you can transfer ownership.
If you have any further questions about policy ownership or are looking to change the owner of your policy, feel free to contact us.
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