Sentences with word «policyowner»

However, a number of other types of policies or strategies offer some of the features of UL and not others, if policyowners desire only certain features.

Incidents of Ownership In life insurance and annuities, the right to exercise any of the privileges of policy ownership, including the right to change beneficiaries, withdraw cash values, take policy loans, make assignment, etc.) Incidents of ownership can be major estate planning factors for policyowners who wish to transfer policy ownership from themselves to another person or a trust, thereby removing the policies from their estates.

Second, insurance companies offered incentives for policyowners of existing policies with low fixed loan rates to either agree to a higher fixed loan rate (usually 8 percent) or to an adjustable loan rate.

In this post we're going to focus on the role of policyowner, and help you understand what it means to be the owner of a life insurance policy.

This type of insurer is considered to be a non-participating company because the insured policyowners do not own the company nor do they receive any dividends it returns.

Many new policies allow policyowners to choose either a fixed or variable loan rate.

Policyowners pay a certain amount, called premiums, to keep their life insurance policies inforce, or active.

Although not guaranteed, MassMutual has paid participating policyowners life insurance dividends every year since 1869.

Although not guaranteed, MassMutual has paid participating policyowners life insurance dividends every year since 1869.

Mutual insurers issue participating policies, in which policyowners share in the company's ownership and receive dividends of the divisible surplus of the company's profits.

Many whole life policyowners use these loans to supplement their income after retirement.

(Participating Company) A mutual insurance company is one in which insured policyowners are also the company's stockholders (owners).

Disadvantage No. 5: The flexibility with respect to premium payments and death benefits permits policyowners to change the policy in such a way that it may inadvertently become a modified endowment contract (MEC) with adverse tax consequences.

Viatical settlements are normally an option only available senior life insurance policyowners because the company will want to keep their risk to a minimum.

The definition of a life settlement is simply is the sale of a life insurance policy from the original policyowner to a third - party investor.

Policyowners generally may ask to set premiums to zero without the policy lapsing (or without invoking the automatic policy loan provision), although this virtually always requires notice to the insurer.

The selling policyowner receives an upfront cash payment in exchange for transferring ownership of the life insurance policy — typically more than any existing cash value but less than the policy's full death benefit — and the investor as the new owner then continues to make the ongoing / annual premium payments.

Note that when policyowners make changes to an adjustable life insurance contract, the guarantee period will also change.

Many policyowners who practice infinite banking or who have a life insurance retirement plan consider making use of the cash value they built up in their policy during their lifetimes.

Conversion privileges generally do not require policyowners to complete a medical exam, so they would not be denied coverage based on any change in life expectancy, provided they are making the change during the period their term policy allows for conversion.

This required provision gives policyowners the right to return the policy for a full premium refund within a specified period of time, if they decide not to purchase the insurance.

Current policyowners may continue to make premium payments subject to their contract provisions.

Although policyowners must pay interest on policy loans, cash values continue to grow and are credited with at least the minimum guaranteed rate in the policy.

Many companies allow existing policyowners to exchange their existing low loan rate policies for new adjustable loan rate policies with favorable terms or conditions such as enhanced cash value schedules, higher face amounts, a higher dividend classification, and lower than normal upfront exchange fees.

«The ability to sell their policies as a life settlement enabled policyowners to receive an amount more than four times greater than what they would have received had they surrendered their policies to their insurance companies.»

However, this «non-forfeiture value» of a life insurance policy has an important secondary benefit as well — it gives an insurance company the means to provide policyowners a personal loan at favorable interest rates, because the cash value provides collateral for the loan.

However, in most cases, insurers offer policyowners potentially higher dividends if they are willing to accept the adjustable loan rate.

The lesson learned is that policyowners need to ensure the language used encompasses what your actual desires are and annual policy reviews are very important.

(By the way, MassMutual has consistently paid dividends to eligible participating policyowners since the 1860s.)

For qualified policyowners, a life settlement is a valuable alternative to surrendering a policy that is no longer needed or is no longer affordable.

Considering the possibility that a beneficiary may die before the insured, insurance companies advise policyowners to also designate contingent and tertiary beneficiaries.

The company has a long history of financial strength and strong performance, and although dividends are not guaranteed, MassMutual has paid dividends to eligible participating policyowners consistently since the 1860s.

The advantage for policyowners improves further on policies for $ 1,000,000 or more: Male nonsmokers and smokers between the ages of 50 - 80 see a drop in rates ranging from 8 to 14 per cent.

Unnatural death: First Information Report and Postmortem Report Waiver of Premium: Proposed policyowner Form and Deed of Relinquishment to be executed on Rs. 200 / - stamp paper duly notarized.

If VL and VUL policyowners select a portfolio of investments within their policies that are similar to the equity index used in an IUL equity - indexed interest crediting formula, they can expect investment performance and cash value accumulations to be at least as great as, and generally greater than, that for the IUL policy when equity markets are up.

Policyowners whose circumstances change can later reconfigure the policy by changing the schedule of premium payments and / or the face amount or duration of coverage.

IUL policyowners enjoy virtually all the advantages they would enjoy if they owned regular universal life policies including flexibility and transparency.

New allocations to the MainStay VP Eagle Small Cap Growth - Initial Class or MainStay VP Janus Balanced - Initial Class Investment Divisions will not be accepted from Policyowners who were not invested in the MainStay VP Eagle Small Cap Growth - Initial Class or MainStay VP Janus Balanced - Initial Class Investment Division on February 17, 2012.

The majority of policyowners — over 75 % — use the money to fund long term care insurance, cover medical costs and / or supplement their retirement income.

Therefore, if the insurer makes more money than is needed to run the business, they pay some of it back to policyowners in the form of a dividend.

Many carriers allow policyowners to renew their policies at the end of the term, but for a price.

Many whole life policyowners use these loans to supplement their income after retirement.