Sentences with phrase «policy on a tax free basis»

Not exact matches

The owner could execute a partial 1035 exchange (taking out a portion of the $ 50,000 that would normally be taxable) and use those funds to pay for the LTC policy on a tax - free basis each year.

Next time around, you may want a permanent policy so you can accumulate cash value on a tax - deferred basis or just for the hassle - free life coverage at a guaranteed premium amount.

When coupled with a life insurance policy, the hybrid LTCi owner will also have the advantage of passing dollars on to family on an income tax - free basis if the policy was never accessed for long term care coverage.

Annuities can be used, to either pay premiums on a long - term care policy or help defray costs associated with these services, sometime on a tax - free or tax - favorable basis.

Your money continues to grow income tax free in your policy based on cash value guarantees and potential dividends

As an example, a properly structured cash value whole life insurance policy that is purchased from a mutual company, is one that has tremendous liquidity, low cost (majority of the cost is buying lifelong level insurance — not to be compared to term), no tax on the growth of the account, tax free loans, tax free withdrawals (up to basis), tax free to survivors, no contribution limits, no required withdrawals, is free from creditors, and has minimum guarantees.

If the policy selected for conversion to LTCSO exceeds the IRS tax - free maximum, the policy will be amended as necessary on an individual basis.

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

Participating Whole Life Insurance DEFINITION: whole life policy that provides annual tax free dividend payments based on the performance of the insurance company.

On top of that, because charities are usually able to receive life insurance policy proceeds on a tax - free basis, they can use the entire value of the fundOn top of that, because charities are usually able to receive life insurance policy proceeds on a tax - free basis, they can use the entire value of the fundon a tax - free basis, they can use the entire value of the funds.

What's more, your policy's cash value grows tax deferred and can be borrowed against or withdrawn on a tax - free basis.

Policy loans and withdrawals are available to access cash value.Policy loans are tax free and withdrawals are tax free up to your basis in the policy, i.e. based roughly on how much premium you have paid into the pPolicy loans and withdrawals are available to access cash value.Policy loans are tax free and withdrawals are tax free up to your basis in the policy, i.e. based roughly on how much premium you have paid into the pPolicy loans are tax free and withdrawals are tax free up to your basis in the policy, i.e. based roughly on how much premium you have paid into the ppolicy, i.e. based roughly on how much premium you have paid into the policypolicy.

Modified Endowment Contracts still offer a tax - free death benefit to the insured (this being their primary advantage over an annuity or other investment) but policy owners can no longer access their investment gains on a tax - free basis.

Owners can transfer their cash value on a tax - free basis to a new paid - up policy without creating a taxable event.

Single premium policies are a preferred method for transferring wealth to beneficiaries and charitable organizations on a tax - free basis.

The good news about using permanent life insurance as part of your investing strategy is that the funds accumulate on a tax deferred basis, the proceeds given to beneficiaries is also free of federal income tax, and as your life insurance needs dwindle when you get older you can access the difference through policy loans.

To avoid taxation on policy distributions in excess the policy's basis, loans can be used to access additional cash values tax free.

The payouts from term life policies are almost always tax - free, except in situations where the person being insured, the policy's owner, and the beneficiary of the policy are all different people (agents refer to this type of arrangement as the «unholy trinity» or the «Goodman Triangle,» based on the court case that established this rule), or if they would put your estate over the estate tax threshold.

The cash values would also be available to fund lifestyle or personally managed investments on a tax free basis in the form of refunds of premiums paid in and policy loans (which would be paid off on death by the death benefit.)

As a form of permanent coverage, universal life policies provide a guaranteed tax - free death benefit to policyholder beneficiaries based on the amount of premiums paid over time.

«On the other hand, if the policy performed well according to expectations, you as the policyholder could be able to start taking loans against the cash value of the policy on a tax - free basis.&raquOn the other hand, if the policy performed well according to expectations, you as the policyholder could be able to start taking loans against the cash value of the policy on a tax - free basis.&raquon a tax - free basis.»

Your money continues to grow income tax free in your policy based on cash value guarantees and potential dividends

As your cash value account grows through tax - deferred interest, the policyholder can easily take loans against the policy on a tax - free basis for any reason, In fact, policy loans are not required to be repaid.

Examples of these benefits are the ability to grow tax free, policies have an increasing death benefit based on contract value (higher returns mean higher death benefit), and withdrawals are still taxed FIFO, so up to the amount you put in the contract is not considered by the IRS to be taxable.

The proceeds from a life insurance policy are paid to the beneficiary on a tax - free basis, which provides a lump sum that can be used for a number of purposes.

As with other kinds of permanent life insurance policy, Indexed UL policies have the potential of building up cash value that can accumulate on a tax - free basis that a policyholder can access on a tax - free basis later in life.

Think of it as a way to purchase annually renewable term insurance (although you can lock in a 10 - year fixed term cost under the policy if you wish) by having the term insurance premiums deducted, on a tax - free basis, from the interest growth on your deposit into the policy.

Whole life insurance policies also include various tax - free benefits, including access to policy values on a tax - favored basis and tax - deferred build - up of cash value.

You can build up the cash value inside the policy on tax deferred basis and then tap into it tax - free.

The money grows inside of the policy on a tax - deferred basis and can be drawn out in retirement on a tax free basis.

Moreover, a permanent life insurance policy funded on a regular basis by the successor could pay off the retiring principal and preserve an income tax — free death benefit for the policy owner (successor), Byron says.