Sentences with phrase «partial surrender»

Dividends are only taxable to the extent that you take a «Withdrawal» from your cash value or do a partial surrender.

The accumulation of cash in the policy can be accessed through policy loans or partial surrender without tax liability.

Included in this category are policy dividends, lump - sum cash settlements of cash surrender values, cash withdrawals, and amounts received on partial surrender.

Access to the cash account can be done through policy loans or partial surrender, and the cash is payable on a non-taxable basis.

If we surrender for a part of its cash value then it is called partial surrender.

The partial surrender is taking some of your cash value but it in effect will lower the death benefit.

Note: A policy loan or partial surrender can have tax implications and it will reduce your policy's death benefit.

1 time we requested a partial surrender, but I only know that terminology from reading the copies of the one time surrender.

If Charlie does a 1035 like - kind exchange from his current life insurance policy to a new, smaller policy for «just» the $ 50,000 of net cash value, he's actually treated as having exchanged $ 50,000 of cash value plus receiving another $ 150,000 of cash to boot, which was used to repay the loan... and that $ 150,000 of «boot» is taxable as a partial surrender of the policy.

The «bad» news, though, is that a partial surrender of PUAs is still a taxable event; nonetheless, if the PUAs are available to liquidate, it's a far more tax - efficient and cash - value - efficient path.

The «good» news of surrendering PUAs is that because that portion of the coverage is already paid up, its cash value tends to be high relative to the death benefit, which means the policyowner can give up less death benefit to get much more cash value out (at least compared to a partial surrender of the underlying policy itself).

In addition to the potential of a partial surrender, it's notable that a participating life insurance policy that has previously been purchasing PUAs can do a partial surrender of just the PUAs to free up cash to repay the loan.

UL also allows access to the cash value through loans and partial surrender.

In the case of whole life policies, where the death benefit and cash value structure is less flexible, there's no way to take a non-taxable withdrawal from the policy, nor to just reduce the death benefit; however, it is possible to engage in a «partial surrender» of the policy, which liquidates a portion of the policy, returns a portion of the cash value, and reduces the death benefit accordingly.

A partial surrender is a taxable event, but a partially taxable event that frees up cash to repay a life insurance loan may still be better than allowing the loan to outcompound the cash value, leading to a total surrender and a fully taxable event for the whole policy!

2Loans and the partial surrender of any paid - up additions decrease the death benefit and cash value.

A policy withdrawal, on the other hand, is considered to be a partial surrender of the net cash value.

They also have a partial surrender benefit, meaning you can receive a portion back early if you decide not to keep the policy to its contract completion date.

Death benefit is equal to the face amount, plus the sum of premiums, less cumulative partial surrender

Had the individual purchased permanent life insurance, he or she could have access to a potentially significant source of supplemental retirement income in the future (depending on the policy type), while preserving the death benefit in perpetuity (note, however, that the death benefit and cash value of a policy is reduced in the event of a loan or partial surrender, and the chance of lapsing the policy increases).

3 - year compliance periods (following 2 - year Phase 1), with a partial surrender obligation due each year.

Even a partial surrender of one's defensive superiority feelings helps to open the door to mutually redemptive relationships.

Had the individual purchased permanent life insurance, he or she could have access to a potentially significant source of supplemental retirement income in the future (depending on the policy type), while preserving the death benefit in perpetuity (note, however, that the death benefit and cash value of a policy is reduced in the event of a loan or partial surrender, and the chance of lapsing the policy increases).

Generally, a partial surrender is taxed on a first in / first out (FIFO) basis.

This is known as a partial surrender, which reduces the cash surrender value of the policy and the death benefit amounts.

1 Accessing cash values, through loans and partial surrenders or by accelerating benefits for long term care benefit payments, will reduce the death benefit payable, the cash surrender value and the long term care coverage available.

¹ Access to cash values through borrowing or partial surrenders will reduce the policy's cash value and death benefit, increase the chance the policy will lapse, and may result in a tax liability if the policy terminates before the death of the insured.

Generally speaking, loans and partial surrenders from MECs result in immediate taxation to the extent that the cash value of the contract exceeds the premiums paid.

As the policyowner accumulates cash value inside the policy, the person can access the cash value, through loans or partial surrenders, which can be used for a variety of personal needs, such as quick cash for an emergency or to help supplement retirement income.

especially valuable in a split - dollar business arrangement, equals the policy's face amount plus the adjusted total premium (total premiums paid, less any partial surrenders).

The guaranteed life insurance benefit will be reduced by any partial surrenders and unpaid loans, including accrued loan interest.

2 Policy loans and / or partial surrenders may affect the death benefit.

2 The adjusted total premium is the initial single premium plus any underwritten increases, less any partial surrenders and any applicable surrender charges in excess of policy gain and any loans and accrued loan interest, The death benefit guarantee will not apply if the sum of any outstanding loans plus accrued loan interest is greater than the policy's cash value, The death benefit guarantee will not apply if the sum of any outstanding loans plus accrued loan interest is greater than the policy's cash value.

Of course, tapping cash values through borrowing or partial surrenders will reduce the policy's cash value and death benefit.

Cash value can be accessed through loans and partial surrenders which accrue interest and, if not paid back, will reduce the policy's death benefit and cash value.

This can happen due to insufficient premium payments, if loans or partial surrenders are made, or if current interest rates or charges fluctuate.

If you choose to take loans or partial surrenders, the cash value and the death benefit payable to your beneficiaries will be reduced.

Withdrawal of funds from a MEC, in the form of loans (including loans used to pay the policy premium), partial surrenders, assignments, pledges, or withdrawals may be subject to income tax and possibly penalties.

Unlike with an IUL policy, a term insurance policyholder can not take loans or partial surrenders from the term policy to help manage critical life events because it's a term policy and there is no cash value.

However, loans, partial surrenders, policy changes, or delinquent premiums may affect the length of the lapse protection and may cause loss of the protection itself.

¹ Access to cash values through borrowing or partial surrenders will reduce the policy's cash value and death benefit, increase the chance the policy will lapse, and may result in a tax liability if the policy terminates before the death of the insured.

The guaranteed life insurance benefit will be reduced by any partial surrenders and unpaid loans, including accrued loan interest.

4 Distributions from a life insurance policy in the character of partial surrenders (withdrawals) up to basis or policy loans will generally be income tax free, provided the policy does not violate Modified Endowment Contract (MEC) guidelines and the policy is not terminated during the lifetime of the insured.

As stated in the policy, the cash surrender value will never be less than the premium you paid into the policy, less any partial surrenders and outstanding loans, including loan interest.

This can happen due to insufficient premium payments, if loans or partial surrenders are made, or if current interest rates or charges fluctuate.

As the policyowner accumulates cash value inside the policy, the person can access the cash value, through loans or partial surrenders, which can be used for a variety of personal needs, such as quick cash for an emergency or to help supplement retirement income.

You can access the cash for any reason by taking tax - free loans or even partial surrenders that are also tax - free.

Under these new laws, withdrawals, partial surrenders, loans, or assignments taken from the gains of a life insurance policy that qualifies as a MEC will be taxed as income and can be subject to IRS penalties.

1 Distributions from a life insurance policy in the character of partial surrenders up to basis (withdrawals) or policy loans will be tax - free, provided that the policy does not violate Modified Endowment Contract (MEC) guidelines and the policy does not lapse.

Distributions from a life insurance policy in the character of partial surrenders (withdrawals) up to basis or policy loans will generally be income tax - free, provided the policy does not violate Modified Endowment Contract (MEC) guidelines and the policy is not terminated during the lifetime of the insured.