Sentences with phrase «policy cash values after»

Step 2: Check to see how the company will determine the rate credited to policy cash values after the guarantee period.

Not exact matches

Here's how: Suppose that after you hold your insurance policy within your retirement account for three or four years, it builds a cash value of $ 20,000.

The policy does not continue to accumulate cash value and excess interest after the insured's death.

Further, if the death benefit exceeds the policy cash surrender value, the proceeds received by the beneficiary after the client's death will also be income tax - free.

Although the payment of the insurance premiums is not tax deductible, any increase in the cash value of the insurance policy due to investment gains is not taxed until you begin to withdraw the money after you retire.

The amount you receive after a claim will depend on whether you have replacement value coverage or actual cash value coverage (depreciated value), and whether you have policy addendums, called «riders,» that list specific items of value.

You can change the death benefits during the life of the policy, usually after passing a medical examination, and you can pay premiums from your accumulated cash value.

Guaranteed tax deferred cash value growth provides that your policy's cash value account will continue to grow year after year.

However, permanent life insurance can be structured as an employee benefit, as the policy, and its cash value, can be transferred to the insured after a certain number of years or at a particular milestone.

In either of these cases, provincial legislation protects the entire policy — including the death benefit and cash value — from the claims of creditors of the policy owner during his lifetime and after death.

Terminal Illness / Nursing Home Care Rider After the first policy year, the withdrawal charge on withdrawals up to 50 % of the Cash Surrender Value ($ 1,000 minimum) is waived upon the occurrence of one of the following events for the Owner: (a) Terminal illness (life expectancy of 12 months or less).

In an indexed universal life policy (IUL), premiums are added to the cash value after subtracting for the cost of the death benefit and fees.

If you pass away after and have borrowed against the cash value of your policy, the amount borrowed will be deducted from the death benefit.

So if you filed an insurance claim after your five - year - old television was stolen, a policy with actual cash value coverage would likely reimburse you for a percentage of what you paid for it.

2Your policy's cash value typically becomes a useful source of funds only after several years of premium payments, which allows the cash value to build up.

The term «proceeds and avails», in reference to policies of life insurance, includes death benefits, accelerated payments of the death benefit or accelerated payment of a special surrender value, cash surrender and loan values, premiums waived, and dividends, whether used in reduction of premiums or in whatever manner used or applied, except where the debtor has, after issuance of the policy, elected to receive the dividends in cash.

The policy builds a cash value in this investment component which you can borrow against or cash out after a certain time.

After 10 years, the cash value of the whole life policy would be roughly $ 28,000.

According to the life insurance agent's chart, after 30 years the cash value of the whole life policy will be well into six figures, and will also serve as an additional retirement plan.

This cash value means you can do things like borrow against your policy or cancel the policy for part of the cash value after a period of time.

Source: p 336, Personal Finance For Canadians For Dummies (4 ed, 2006; but a 5 ed (2010) exists) by T. Martin, E. Tyson «Cash value policies are all paid up after x years.

Over time, the savings component provided by the policy grows and the death benefit shrinks; if the policyholder dies after the cash value of the policy is fully realized, the entire amount paid comes from the cash value rather than the death benefit.

That means if you have enough money in the cash value, you can use that to skip premium payments entirely, letting the accrued interest do the work — but keep in mind that this can typically only be done after the first year of the policy, and only if there's at least enough cash value in the policy to keep the policy inforce for another 60 days.

High net worth estate planning may require using strategies such as the 1035 exchange for life insurance due to potentially high cash values and the need to assure that policies are performing optimally after many years.

There are typically some limitations to this, like only being able to do it after you've held the policy for a year or a requirement to have enough money in the cash value to keep the policy in force for two months.

* All permanent policies can be surrendered for their current cash value after a certain number of years, at which point the insurer pays the accumulated cash value minus any loans and fees.

At the same time, letting the policy lapse may not be the best option either, especially after paying into it with the expectation of accruing a healthy cash value.

When you pay premiums on these cash value policies, you pay them with after - tax dollars.

Seven - Pay Test This is the maximum annual premium that can be paid during the first seven policy years (or after a material change) without causing a cash value life insurance policy to become a Modified Endowment Contract (a MEC).

Whole life insurance policies pay death benefits (proceeds after death) and they may also build cash value.

After a certain point in the life of the policy, you are allowed to borrow against that cash value.

These products provide a guaranteed cash value, guaranteed level premiums and guaranteed death benefits, but with the added security of having the policy become fully paid up after a certain period of time.

After years of saving and contributing to our whole life and variable universal life policies, we were able to take all of the accumulated cash value in our policies and move it to a policy that has been able to grow at over 7 % each year for the last 6 years.

After much deliberation, he settled on a partial conversion to a cash value universal life policy.

After year ten, policy loans have a very low interest rate, making this policy an excellent choice for those who value tax - deferred cash value accumulation, with the prospect of withdrawing cash from the account.

After 6 years, my policy had built up some cash value.

After the initial term, the policy reverts back to a plain universal life policy where higher premiums and cash value will be needed to sustain the policy.

At any rate, a month after my son was born I purchased him an increasing death benefit cash value life insurance policy.

Whole Life: A Cash Value Life Insurance policy is one that has an «investment» side component that will build up a small accumulation after a decade or so.

After 25 years, Gerber promises that the cash value of the policy will be at least equal or greater than the total amount of premiums paid up until that point.

However, if you'd prefer to have a policy that could provide the cash value * to pay off debts and don't want to worry about it expiring after a certain number of years, you may want to consider a permanent life insurance policy.

This cash value means you can do things like borrow against your policy or cancel the policy for part of the cash value after a period of time.

For example, after a down year in the market, you can use the cash value of a policy instead of your IRA, allowing your savings to replenish.

There are typically some limitations to this, like only being able to do it after you've held the policy for a year or a requirement to have enough money in the cash value to keep the policy in force for two months.

* All permanent policies can be surrendered for their current cash value after a certain number of years, at which point the insurer pays the accumulated cash value minus any loans and fees.

Over time, the savings component provided by the policy grows and the death benefit shrinks; if the policyholder dies after the cash value of the policy is fully realized, the entire amount paid comes from the cash value rather than the death benefit.

[Editor's note: Andres» policy used Actual Cash Value to settle the claim, which determines the value of a lost item after first depreciatinValue to settle the claim, which determines the value of a lost item after first depreciatinvalue of a lost item after first depreciating it.

However, if your policy only reimburses you the actual cash value, you'll receive how much that 2012 laptop is currently worth today after depreciation — which will not be nearly as much as you originally paid for it.

Remember, the death benefit doesn't pay out until both policyholders have died, but one alternative is to have a policy where there's enough cash value built up after, say, five years to borrow from the policy and pay final expenses.

You can also cash out the policy for part of its value after a certain amount of time.