Sentences with phrase «premium for investment purposes»
The cash value accumulation feature allows the insurer to take a portion of the premium for investment purposes, so you earn interest which builds over time.
https://www.insuranceblogbychris.com/ Not exact matches
A type of Permanent Life insurance that allows some or all of the premium payments to be held in a separate account for investment purposes.
A type of permanent life Insurance that allows some or all of the premium payments to be held in a separate account for investment purposes.
A type of permanent life Insurance that allows some or all of the premium payments to be held in a separate account for investment purposes.
A type of Permanent Life insurance that allows some or all of the premium payments to be held in a separate account for investment purposes.
These policies cost more than term insurance because the premiums get divided for insurance and investment purposes.
However, setting up these plans so far in advance comes with it's own downsides, as a lot can change in the interim (like the funeral home changing ownership) and you won't have that premium money to use for other purposes (investment, for instance, which will net you a much greater return and can be used for funeral payments once you actually pass).
Therefore, if you have purchased an insurance plan for the dual purpose of insurance and investment, only the portion of the premium that goes towards providing life cover (known as mortality charge) shall be subject to GST.
Instead, they are more like a return of investment and are generally treated for tax and other purposes as a nontaxable return of prior overpayment of premiums.