Sentences with phrase «premium life insurance contract»

Not exact matches

Like Life Insurance policy, a health insurance policy is a legal contract between insurer and insured; in which insured pays premiums and in returns, insurer agrees to pay for medical expenses for a specified limit or sumInsurance policy, a health insurance policy is a legal contract between insurer and insured; in which insured pays premiums and in returns, insurer agrees to pay for medical expenses for a specified limit or suminsurance policy is a legal contract between insurer and insured; in which insured pays premiums and in returns, insurer agrees to pay for medical expenses for a specified limit or sum insured.

Preferred Plus variable annuity is a flexible premium fixed and variable deferred annuity issued by Commonwealth Annuity and Life Insurance Company, 20 Guest Street, Brighton, MA 02135: Contract Form # 3039 - 07.

If you have a cash value policy and can no longer afford to pay the contract's premiums but still need insurance, for example, your carrier may be able to continue insuring your life by using your policy's cash value to buy term life insurance.

Regardless of the company you currently maintain your life insurance policy with, canceling your life insurance will typically require you to do more than stop paying your contract's premiums.

Term life insurance with a return of premium rider allows the owner to get his or her money back at the end of the contract period.

Preferred Plus variable annuity is a flexible premium fixed and variable deferred annuity issued by Commonwealth Annuity and Life Insurance Company, 20 Guest Street, Brighton, MA 02135: Contract Form # 3039 - 07.

Under current federal tax rules, you generally may take federal income tax - free withdrawals up to your basis (total premiums paid) in the policy or loans from a life insurance policy that is not a Modified Endowment Contract (MEC).

Single premium life insurance would be considered a Modified Endowment Contract.

In particular, single premium whole life insurance does not meet the IRC requirements to avoid a modified endowment contract.

Front - end loads are assessed as a percentage of the total investment or premium paid into a mutual fund, annuity or life insurance contract.

Horizon variable annuity is a flexible premium fixed and variable deferred annuity issued by Commonwealth Annuity and Life Insurance Company, 20 Guest Street, Brighton, MA 02135: Contract Form # 3040 - 09.

If you used the proceeds of a home mortgage to purchase or «carry» securities that produce tax - exempt income (municipal bonds), or to purchase single - premium (lump - sum) life insurance or annuity contracts, you can not deduct the mortgage interest.

Life insurance is a contract between you and a life insurance company to guarantee your survivors a sum of money upon your death, provided that all of the premiums are paid and the policy is still in foLife insurance is a contract between you and a life insurance company to guarantee your survivors a sum of money upon your death, provided that all of the premiums are paid and the policy is still in folife insurance company to guarantee your survivors a sum of money upon your death, provided that all of the premiums are paid and the policy is still in force.

If you fund the contract with more premium than is necessary to keep the policy in force over any seven - year period, the life insurance policy fails the seven - pay test.

Not only does the single premium option eliminate one of the core benefits of a universal life insurance policy — flexible payments — but you need to confirm if this policy will be a modified endowment contract.

So, if your company is the beneficiary, which is kind of the point of key person insurance, then the premiums are not deductible (similar to a personal life insurance contract) because the death benefit is not subject to taxation.

The inner - workings of cash value life insurance consists of a life insurance policy, which is a contract between the policy owner, the insured (often the same person), and the insurer, where the insurer agrees to pay a death benefit to the policy's beneficiary, based on the owner continuing to make the policy's premium payments.

If a policy with no cash surrender value is sold (for example a term life insurance contract), the policy premiums would have largely covered just the cost of insurance, so that the proceeds received from the sale of the policy would all be capital gains.

The guidelines were established to set limits on the amount of excess premiums a policyholder could contribute to a policy for benefiting from the tax - advantaged status of proceeds from life insurance and avoid a modified endowment contract (MEC).

A life insurance policy is simply a contract between a life insurance provider and an individual to provide a lump - sum payment, called a death benefit, in exchange for making premium payments to the provider.

The policy will go into effect once you sign the contract, return it to the life insurance company and make your first premium payment.

Once the life insurance underwriter reviews the results of the medical exam, you will receive your policy contract and premium rates.

And here's the bottom line: all life insurance policies promise to pay an agreed - upon sum of money should you die while your policy is in - force (that is, while you're paying your premiums on time and while you're still operating within the terms of your contract).

The money that is used to purchase the contract is placed into an escrowed trust account — typically an irrevocable trust — and that money makes premium payments to keep the life insurance policy in force until the insured dies.

A standard fixed annuity is an insurance contract that allows an individual to pay premiums — either in a lump sum or by monthly installments — and obtain set income payments for life.

Just keep in mind that all riders are just add - on insurance contracts, that cost you big money in premiums, and that's how life insurance companies earn their massive profits.

Life insurance policy is a contract between the insurers or insurance provider wherein a lump sum amount is promised as a death benefit to the beneficiary in the event of the policyholder's death, provided the policy was active and the premiums were paid till the insured's death.

A type of life insurance where the contract is renewed each year with a premium payment.

For the uninitiated, an annuity is a long - term contract between an individual and an insurance company which guarantees that in exchange for a lump - sum premium or a series of premiums the insurance company will guarantee an income stream that can last for a certain number of years — or even for an entire life.

Seven - Pay Test This is the maximum annual premium that can be paid during the first seven policy years (or after a material change) without causing a cash value life insurance policy to become a Modified Endowment Contract (a MEC).

That may depend on the state laws pertaining to life insurance and suicide, how long ago the life insurance policy was purchased, if the premiums were all paid up, and any suicide exclusion in the life insurance contract.

A form of term life insurance that offers a guarantee of future insurability for a set period of years, although premiums are paid every year on the basis of a one - year contract.

The premium will be level for the entire term of the life insurance contract.

With whole life insurance, the premium amount will never increase, and the amount of the death benefit will not decrease — even as the insured gets older (and even if he or she contracts an adverse health issue).

Avoid Modified Endowment Status: If the subsequent premiums paid into the new policy, other than the exchange proceeds, are within the new 7 - pay limit, then a 1035 Exchange of a life insurance policy allows the policy owner to place the original contract's entire value in the new policy without creating a modified endowment contract, or MEC.

If you get to the end of your life insurance contract, you may not get 100 % of your premium payments back.

Premiums for Universal Life Insurance are normally high, especially in the early years of the contract.

Your life insurance contract will have a fixed or level premium and a level death benefit.

Single Premium Policy With life insurance and annuities, a contract in which the entire premium is paid in a lump sum at the beginning of the contract period.

Universal life insurance, also known as Flexible Premium Adjustable Life Insurance, has flexible premiums with a minimum and maximum payment option, while giving you the option to change the death benefit within certain guidelines set forth in the contrlife insurance, also known as Flexible Premium Adjustable Life Insurance, has flexible premiums with a minimum and maximum payment option, while giving you the option to change the death benefit within certain guidelines set forth in the insurance, also known as Flexible Premium Adjustable Life Insurance, has flexible premiums with a minimum and maximum payment option, while giving you the option to change the death benefit within certain guidelines set forth in the contrLife Insurance, has flexible premiums with a minimum and maximum payment option, while giving you the option to change the death benefit within certain guidelines set forth in the Insurance, has flexible premiums with a minimum and maximum payment option, while giving you the option to change the death benefit within certain guidelines set forth in the contract.

His contract with the life insurance company guarantees his premium will not increase for 20 years, regardless of any future health issues that arise.

Term life insurance is also known as temporary life insurance because it is a contract purchased for a specific premium to provide coverage for a specific number of years.

A contract holder of a segregated fund, such as a pool of investments tied together in an life insurance policy, pays premiums to an insurance company so that the contract holder will receive an agreed upon sum in the case of loss.

However, in comparison with Permanent Life Insurance rates, the premiums under Renewable Term Insurance contracts, especially in early years of coverage, are relatively low.

Life insurance is a contract where, in exchange for premium payments, a lump sum of money is paid upon the death of the insured person.

Because this is a whole life insurance policy, the amount of the premium that is due is also locked in, not to increase — even as the insured gets older, and / or whether or not they contract an adverse health condition.

When it comes to premium payments, there is another convenient option sometimes offered under Variable Life contracts - a policy with a fixed premium, which justifies the feature of flexibility attributed to Variable Life Insurance.

Answer: A life insurance contract issued for a maximum number of years where the premium, death benefit, and price you pay are guaranteed not to change.

Fixed annuity: A deferred annuity contract in which the life insurance company credits a fixed rate of return on premiums paid or an immediate annuity in which the periodic amount is fixed.

You pay premiums to an insurance carrier for the duration of the contract, much like term life insurance.