Sentences with phrase «policy death benefit proceeds»

Beneficiaries receive policy death benefit proceeds generally free from income taxes and probate delays.

Beneficiaries receive policy death benefit proceeds generally free from income taxes and probate delays.

Not exact matches

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.

This strategy is appropriate if you want to maintain access to the policy's cash surrender value during your lifetime but want to leave the death benefit proceeds to charity.

With term and permanent life insurance, you make premium payments so that in the event of your passing, your loved ones and beneficiaries will receive the death benefit proceeds from the policy.

Under universal life insurance option B, the policy proceeds increase over time and are equal to the cash value plus the death benefit.

If your policy has an accelerated death benefit rider, a portion of the proceeds can be accessed if you become terminally ill or confined to a nursing home.

Because the death benefit amount of your cash value life insurance policy may change over time as its cash value grows, make sure to specify a percentage of the proceeds to go to your beneficiaries rather than selecting a dollar amount.

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.

For example, if you have two beneficiaries slated to split the death benefit, and one of them predeceases you, leaving two heirs behind, upon your death 50 % of the policy's proceeds would go to the living beneficiary and 50 % would be split between the other beneficiary's heirs.

The person or entity that you name as beneficiary on your life insurance policy contract will receive the death benefit proceeds when you die.

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.

Universal life insurance structured under Option B is designed so that proceeds of the policy rise in value over time and equal the death benefit plus the cash value.

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.

If the death benefit amount you receive does not exceed the amount listed in the policy, the proceeds are tax free.

Face Amount — Could also be referred to as the Death Benefit, Policy Value, Payout Amount, Face, or Proceeds.

In addition, should the policy holder pass away while there is still an unpaid loan balance, this amount will be deducted from the total amount of death benefit proceeds that are received by the policy's beneficiary.

Should a policy holder pass away during the «term,» or time frame, of the policy being in - force, a beneficiary (or beneficiaries) will receive the death benefit proceeds.

If the insured dies, the policy pays a death benefit, up to the policy limit, that could help the company bridge any financial gaps created by the loss while the survivors decide how to proceed.

Term policies pay death benefits — if you die during the period covered by the policy, proceeds will go to your beneficiaries.

(In MN, death benefit proceeds from a life insurance policy are generally not included in the gross income of the taxpayer / beneficiary (Internal Revenue Code Section 101 (a)(1).

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

Terminal illness benefit is a one - time acceleration of up to 50 percent of the death benefit proceeds payable under the base policy, not to exceed $ 250,000.

If, however, a policyholder does remove cash from the policy — regardless of whether it is through a withdrawal or a loan — any unpaid balance will be charged against the death benefit proceeds.

The death benefit proceeds, as with other life insurance policies, are received by the company on a tax - free basis.

However, there are some policies that may provide as much as $ 500,000 in death benefit proceeds.

Death Benefit Life insurance policy proceeds payable to the beneficiary upon proof of the insured's dDeath Benefit Life insurance policy proceeds payable to the beneficiary upon proof of the insured's deathdeath.

And, up to $ 1,000 of the policy's death benefit can be made immediately available after the insured's passing while waiting for the remainder of the proceeds to be paid out.

The policy beneficiary or beneficiaries can be a person or entity and is designated to receive the policy proceeds or death benefits at the insured's death.

For example, if the insured lives five years longer than the illustrated «life expectancy,» the premiums to keep the policy in - force will need to be paid for an extra five years and the death benefit proceeds will be paid five years later than illustrated.

Such policy articulates the person who will obtain the proceeds, which is the amount of the death benefit, from the insurance business company whenever the designated person insured dies within the term of the insurance contract policy.

This type of policy offers one component for permanent death benefit proceeds whereby funds will be available to a beneficiary (or beneficiaries) for paying off final expenses and other financial needs of the insured's survivors.

The primary beneficiary is the person or entity that is chosen to receive the death benefit first, receiving the proceeds of your life insurance policy when you die.

A life insurance beneficiary is an individual who receives the policy's benefit proceeds upon the death of the insured.

Much like term insurance, you can buy a policy with a death benefit equal to your home loan (or any other amount), and when you die, the proceeds go to your beneficiaries to use any way they want.

This act allows the court to decide that the life policy proceeds are paid as if the insured outlived the primary beneficiary and if a secondary beneficiary is named, he or she will receive the death benefit proceeds.

If your policy's proceeds are entirely depleted, no benefit is paid after your death.

In addition to signing over the death benefit proceeds, there are also other ways in which you can provide financial benefits to your favorite charity through your life insurance policy.

Similar to with other types of life insurance, the owner of a final expense life insurance policy is able to name a person, or persons, as their policy beneficiary to receive the death benefit proceeds.

If your policy has an accelerated death benefit rider, a portion of the proceeds can be accessed if you become terminally ill or confined to a nursing home.

In many instances, a life insurance policy may be in - force for a number of years before it is required to pay out its death benefit proceeds.

In the event of the death of the policy holder during the term of the policy, the beneficiary can claim the proceeds of the death benefit.

However, if the insured were to pass away while there is still a cash balance due; the amount of unpaid cash will be subtracted from the death benefit proceeds that are paid out to the policy's beneficiary.

A life insurance policy beneficiary is the person or the entity that will receive the policy's death benefit proceeds upon the passing of the insured.

Should a policy holder pass away during the «term,» or time frame, of the policy being in - force, a beneficiary (or beneficiaries) will receive the death benefit proceeds.

With term and permanent life insurance, you make premium payments so that in the event of your passing, your loved ones and beneficiaries will receive the death benefit proceeds from the policy.

But tell your children, tell your beneficiaries that there's a policy out there so that they can find it when you do pass when the time comes; and they can have an easy time to collect the death benefit proceeds.

Guaranteed universal life insurance is a particular type of life insurance that offers a guarantee on the death benefit proceeds of the policy.

The annuity would provide lifetime (or a certain yearly amount) of future payments, but would have no value at death while the life policy would immediately create a sizable death benefit providing tax - free proceeds to children or a spouse at passing.

Life insurance living benefits — also referred to as a policy's accelerated death benefits — can allow the policy holder to use some (or in some cases, even all) of the death benefit proceeds during his or her lifetime.