Sentences with phrase «premium against the death benefit»

The way this would play out is by determining what the policy should have cost (even though it was their error), and charge the difference in premium against the death benefit.

Not exact matches

If you borrow against an existing policy to pay premiums on a new policy, death benefits payable under your existing policy will be reduced by the amount of any unpaid loan, including unpaid interest.

This cash value can be borrowed against for emergency expenses or to cover premiums, but is not part of the death benefit.

Both the extra premium payments and the delayed receipt of the death benefit payment work against the investor and can substantially reduce the illustrated investment return.

In addition to higher premiums, insurance companies that issue guaranteed life policies protect themselves against risk in two additional ways: (1) by offering relatively low payouts, and (2) by typically not providing a death benefit during the first two years after issuing the policy (if the policyholder dies during this time, the company issues a refund of premiums instead).

Whatever gains are earned can be used in a few different ways: to increase the death benefit, to borrow against for some later use or to keep the policy in effect so that you can stop paying monthly premiums.

With other types of policies, variations in dividend payments (which can be used to pay against premium), cash value, and costs of insurance in the case of universal life policies can all create variability with the amount of premium required to keep the policy in force and the ultimate death benefit.

While buying the term insurance policy, you can choose various riders like accidental death benefit, terrorism death benefits, critical illness benefit, permanent disability, waiver of premium and a few more against a few bucks more that get added to your basic acquiring cost.

Whole life insurance policies can also benefit retirees since they provide a fixed premium, allow the insured to borrow against the accrued cash value, and provide a guaranteed death benefit to the insured's beneficiary.

Withdraw Money or Borrow Against It When you pay your premium, a portion of each payment goes toward the death benefit, but a portion also goes to building up the policy's savings component (also known as the «cash value»).

The platinum plus whole life insurance plan offers long - term protection against catastrophic events with features including level death benefit to age 100, long - term protection with level premiums, cash surrender value and policy dividends.

Unlike term policies, the death benefit doesn't expire at a certain age and whole policies build cash value that can be borrowed against or passed on to your heirs tax - free — but only if you always pay your premium.