Sentences with phrase «policy cash values when»

Not exact matches

When it is time for either college or retirement, the policy holder can borrow money from the cash value and pay it back with the death benefit when they When it is time for either college or retirement, the policy holder can borrow money from the cash value and pay it back with the death benefit when they when they die.

Cash value that's left in your life insurance policy when you die is kept by the insurer.

Whole life insurance policies are usually structured to mature when you turn 100 years old, at which point the cash value should equal the death benefit.

Most auto insurance policies are designed to only cover the vehicle's current cash value, not the loan balance, when a total vehicle loss occurs.

When the insured individual gets older, say age 75, if the objective of protection is no longer an issue, the insured has the option to surrender his policy and tap into the cash value as a source of income.

In a nutshell, while most whole life insurance is fixated on maximizing the death benefit of a policy and just allowing cash values to grow over time, strategic self banking focuses on maximizing life insurance cash values, so the whole life insurance plan can be used strategically as a savings and personal financing vehicle for the purpose of recapturing your cost of capital incurred when having to deal with third party lenders or using your own cash.

You see, when a participating whole life insurance plan is properly structured to maximize the cash value, the cash value can become available relatively quickly depending upon the amounts deposited and the other details of the policy.

Naturally, a policy buyer would prefer the insured to be elderly, in poor health, with a policy that has low cash value and a high death benefit, because all of these factors might increase the buyer's yield - to - maturity on the policy when you die.

Make sure the policy you choose has the coverage you need in terms of level premiums, death benefits and cash value when it matures.

Second, when cash value policies are acquired, make sure they are low - expense so you can have immediate liquidity.

Cash value that's left in your life insurance policy when you die is kept by the insurer.

Static - priced universal life policies with low to zero cash values show their significant weakness when liquidity is needed, and might be rejected for that reason alone.

When the size of the loan exceeds your policy's cash value, the life insurance policy will lapse, meaning you lose your coverage.

When you WITHDRAW your cash value you are removing it from the policy and therefore it will impact the cash value growth — policy loans are a better way to access the money in most situations.

When you borrow against your policy (use your cash value as collateral), you are still receiving dividends on your full cash value, AND you get the use of the cash on loan to invest in something else.

When cash value accumulates inside a permanent life insurance policy, tax advantages are allowed under current rules because it is a life insurance policy.

When people start using their policies like this, they see the benefit and they want to do it more and more, over and over, to grow their cash value (infinitely).

When setting up the trust, if the life insurance policy's cash value is greater than the gift tax exemption, you may need to pay a gift tax when transferring ownersWhen setting up the trust, if the life insurance policy's cash value is greater than the gift tax exemption, you may need to pay a gift tax when transferring ownerswhen transferring ownership.

An important factor when using life insurance for cash accumulation concerns the ability to take policy loans, secured by the cash value, without actually withdrawing the cash.

This GUL policy often has one of the lowest premiums in the marketplace, making it an excellent choice when you are looking for permanent death benefit protection vs cash value accumulation.

The question of whether premiums are recognized as income for any of the above strategies is very fact specific, involving questions such as when the employee has access to the cash value in a insurance policy.

But when the insurer performs poorly, the cash value interest rate for a universal policy would be lower than that of a whole life insurance policy.

Therefore, universal life insurance policies have greater upside potential when the insurer's portfolio does well, as the cash value can grow at a higher rate.

When you take out a loan, National Life adjusts your policy dividends, which may result in a lower dividend on the cash value that currently has a loan against it.

When this happens, if a cash value life insurance policy was used to fund a key person policy, the amount of the cash value can be taken out in the form of an easily accessible life insurance policy loan, with no origination costs, tax free.

A 1035 exchange is when you use your cash value from an old whole life policy to buy a new permanent life policy.

And when a life insurance loan is taken out against the policy's cash value, the cash account still is credited with the guaranteed rate and dividend.

When enough cash value has accumulated in your policy, you can use it to make premium payments over the lifetime of the policy, eliminating the need to make out - of - pocket payments.

Universal life insurance offers lifelong coverage, provides flexibility when it comes to paying premiums and choices for how the policy's cash value is invested.

When you pay premiums, a portion of the money goes towards the policy's cash value, which grows according to a rate specified in the policy.

As the insurer passes these additional charges on to you, it should actually be consideration when you determine how to invest the policy's cash value.

When you pay whole life insurance premiums, a portion goes towards paying the cost of insurance, some is put towards sales and administrative fees, and the rest of the money goes towards the policy's cash value.

As you can see, when you withdraw or borrow money from the policy's cash value, the insurer will reduce the death benefit accordingly.

When you make premium payments on a cash - value life insurance policy, one portion of the payment is allotted to the policy's death benefit (based on your age, health and other underwriting factors).

Another possible PRO when comparing term life insurance is the fact that some policies can be designed to accumulate some cash value.

However, the good news is when properly funding a policy the cash builds quickly and you will have access to the cash value sooner rather than later.

Yes, the cash value in the policy takes some time to accrue in the same way that any other business requires start up capital to get going... but when the policy is funded, the magic begins.

This is where the correctly - structured policy's benefit of underlying continued growth even when you've borrowed against the cash value comes into play.

What this means for your child is that if they are in need of student loans or other type of government aid, any cash value in his or her policy will not be taken into account when determining their eligibility for such aid.

In most indexed universal life insurance policies, the new cash value of this subaccount then becomes the baseline for the next year when calculating the amount that will be credited to your account.

As a result, the best whole life insurance rates are not achieved when you compare a cash value focused policy vs a death benefit focused policy.

New York Life whole life insurance should always be considered when looking for the best cash value policy in the marketplace.

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.

But here's the real kicker: When you take out a policy loan, you're borrowing from the insurance company's general fund, NOT from your own cash value directly, which instead is simply the collateral for the loan.

By reducing volatility and potential losses, within your contract, the Market Stabilizer Option ® can provide a level of comfort at times when the market is unpredictable and protect your policy's cash value from extreme fluctuations.

When life insurance policy owners no longer want, need, or can afford to continue to pay policy premiums, they traditionally have surrendered their policies to the issuer for their cash surrender value.

This continues until policy maturity at age 121, when the cash value and death benefit are the same.

Given that withdrawals are considered taxable income when they exceed the amount you have invested in an insurance policy (i.e. your Basis), loans are typically a better way of accessing your cash value if you intend to pay back the money at some point.

Prior to 2008, Western District of New York courts held that when a husband and a wife both file bankruptcy and one spouse has a life insurance policy with cash value and the other spouse as the beneficiary, the bankruptcy trustee, as trustee for both the owner and beneficiary of the policy, could claim in the cash value.

A typical term policy gives you coverage for a specific period of time and when that time is up, if your family has not had to use the death benefit, the money that you have paid in is a sunk cost — no cash value, and no more insurance coverage.