Sentences with phrase «policies are surrendered»

If policies are surrendered within a short period of time, however, policyholders may receive little of their investment.

According to a recent report, 25 % of all life insurance policies are surrendered within just three years — you can't really blame the insurance company for covering their own backs here.

Approximately 26 % of whole life insurance policies are surrendered within the first three years and 45 % are surrendered within the first ten years.

Another benefit of permanent life insurance is that unless the policy is surrendered prior to death, the policyholder is insured for life.

The recently deceased Denis Healey once argued, «No Socialist Party with the prospect of forming a government could accept a system by which important fields of national policy were surrendered to a supranational European representative authority».

A: Roy, to start I would verify the Adjusted Cost Base of the policy and the amount of the Taxable Gain if the policy is surrendered.

In addition, if a policy is surrendered prematurely, there may be surrender charges and income tax implications.

It can be borrowed by the insured or withdrawn when the policy is surrendered.

Finally, we mentioned that income is only realized when cash is actually withdrawn from the policy, and / or the policy is surrendered, and proceeds exceed the premiums paid.

You can borrow against the cash value of the policy, or collect it when the policy is surrendered.

In addition, if a policy is surrendered early, there may be surrender charges and income tax obligations.

If a permanent life policy is surrendered prematurely, there may be surrender charges and income tax implications.

Surrender charges will apply if the policy is surrendered within the first 20 years of the policy being in force.

However, if the policy is surrendered, or cancelled (as described above), any cash value in excess of the premiums paid is taxable income and reported to the IRS on a form 1099R.

Please note that some policies have no or zero «surrender value», i.e. the customer will not get back anything if the policy is surrendered after the free - look period.

Certain life insurance contracts accumulate cash values, which may be taken by the insured if the policy is surrendered or which may be borrowed against.

Cash Surrender Value The actual cash value that the policy owner would receive in the event a policy is surrendered.

It is unfortunate that the policy was surrendered a few months before your father's passing.

Surrender Charge Typically applicable to adjustable life, indexed universal life, and variable universal policies, a generally declining schedule of charges against the cash value may be imposed on the policy for a certain number of years from policy inception if the policy is surrendered, the death benefit is reduced, or in some instances, the surrender charge is taken into account in the monthly calculation to determine if the policy is still in force.»

If the policy is surrendered before the completion of five policy years then the insurance cover ceases and the Surrender Value will be kept in the Discontinued Fund of the policy.

If the policy is surrendered before the completion of five policy years then the insurance cover ceases and the Surrender Value equal to Fund Value minus Discontinuation Charge will be kept in the Discontinued Fund of the policy.

If the policy is surrendered within the first five years from the start of the plan, then the fund value is transferred to what is called as the Discontinued Policies Fund.

The only way tax is ever due on the policy is (1) if the premiums were paid with pre-tax dollars, (2) if cash value is «withdrawn» past basis rather than «borrowed,» or (3) if the policy is surrendered.

Policy Termination or Surrender Benefit: The policy gets terminated on the earliest of the following: (1) the date on the which the policy is surrendered.

If the policy is surrendered or canceled before death, any loans received above the cumulative value of premiums paid will be subject to tax as growth on investment.

Some companies offer a partial return of premium paid if the policy is surrendered early.

You can borrow against the cash value of the policy, or collect it when the policy is surrendered.

The actual cash value that the policy owner would receive in the event a policy is surrendered.

The two main reasons you might not want to change policies are surrender charges (only in permanent plans such as whole life or universal life), and your new policy will likely contain a new two year contestable period, which means the company could potentially weasel out of paying the life insurance proceeds upon your death if you die within 2 years of purchasing the policy and they find that you answered questions fraudulently on your application.

For example, some policies include surrender fees, which are charged when the policy is surrendered or cash values are withdrawn within a certain period of time.

The policy's essential elements consist of the premium payable each year, the death benefits payable to the beneficiary and the cash surrender value the policyholder would receive if the policy is surrendered prior to death.

When a policy is surrendered before the death of the insured, the cash surrender value is paid to the owner.

If the policy is surrendered for its cash value only the excess of the cash value over the amount of premiums you have paid less dividends is taxable.

Cash value: In a life insurance policy, the amount available to the owner when a policy is surrendered to the company.

So - called «non-forfeiture» laws ensure that if a consumer walks away from the policy, that reserve is available in the form of a policy cash value that can be paid if / when the policy is surrendered.

If the policy is surrendered or withdrawals are taken, only cash value made in excess of the premiums paid (minus any dividend payments paid out) is considered taxable.

However, while a life insurance loan isn't taxable — nor is its subsequent repayment — the presence of a life insurance loan can distort the outcome if / when a life insurance policy is surrendered or otherwise lapses.

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.

In addition, if a policy is surrendered prematurely, there may be surrender charges and income tax implications.

As noted earlier, when a life insurance policy is surrendered in full, the gains on the policy are taxable (as ordinary income) to the extent that the cash value exceeds the net premiums (i.e., the cost basis) of the policy.

If policy is surrendered before the completion of lock - in period of 5 policy years from the policy commencement date, the Surrender Value equal to Fund Value less applicable Discontinuance Charge will be kept in the Discontinued Policy Fund and no subsequent charges other than Fund Management Charges for discontinued policy fund will be deducted.

If the policy is surrendered after the lock - in period, then the Surrender Value, that is the Fund Value, will be paid immediately.

If the policy is surrendered before the completion of the lock - in period of 5 policy years from the policy commencement date, the Surrender Value equal to Fund Value less applicable Discontinuance Charge will be kept in the Discontinued Policy Fund of the company.

In the preceding example, the presence of the life insurance policy loan reduced the net cash value received when the policy was surrendered, even though it didn't impact the tax consequences of the surrender.

In addition to paying a death benefit, a whole life policy allows accumulation of cash value that the policy owner receives if the policy is surrendered.

Accumulates tax - deferred cash value that can be borrowed against through an interest - bearing loan or receive if the policy is surrendered.

If the policy is surrendered during the life of the contract the owner will receive the sum of the cash surrender value, even though the insured is not deceased.

When a life insurance policy is surrendered or otherwise lapses, though, the remaining cash value is again used to repay the loan... even though the taxable gain is calculated ignoring the presence of the loan.

If the policy is surrendered before completing 5 years, then the Fund Value with a net of discontinuance charges shall be credited to the Discontinued Policy Fund.

After the completion of 5 policy years, on the very date when the policy was surrendered, the entire fund value is paid without any charges.