Sentences with phrase «premium loan»

An automatic premium loan provision is a clause in a whole life insurance policy.

Use your accumulated cash value to pay the future premiums (also referred as automatic premium loan).

One word of caution, the rising cost of insurance associated with the IUL, and the potential for premium loans, can create a perfect storm for those that are unprepared at an old age.

There are a number of riders available on NonMed Term 350 policies, including critical illness benefit, accelerated death benefit, waiver of premium, and automatic premium loan provision.

Available riders include Disability Waiver of Premium, Children's Term, Living Benefits Rider, and an automatic premium loan option which can take a small loan from the policy to keep it in force when payments are missed.

When it comes to whole life insurance, generally after 60 days a policy will create an automatic premium loan against the case value to pay the premium, although you now have a loan against your policy in the amount of the premium and interest being charged on that loan.

Within Joe's life insurance policy, the automatic premium loan clause gives his insurer the ability to remove the $ 500 annual premium from the built - up cash value of the policy.

The automatic premium loan generally is a «no charge» provision that policyowners should look for to avoid unintentional lapses.

One word of caution, the rising cost of insurance associated with the IUL, and the potential for premium loans, can create a perfect storm for those that are unprepared at an old age.

If a policyholder has selected the automatic premium loan provision, a loan would automatically be taken against the cash value of the policy to pay the premium in the event the policy was about to lapse for nonpayment of premium.

Money loaned to the policyholder through an automatic premium loan is treated like any other loan against the policy's cash value.

With some life insurance carriers, if a premium is not paid by the 31 - day grace period, an automatic premium loan will be made — assuming sufficient cash value exists in the policy.

Policy loans and automatic premium loans, including any accrued interest, must be repaid in cash or from policy values upon policy termination or the death of the insured.

The average rate of interest for bad credit loans is 15 points higher than the premium loan value.

While there are emerging subprime lenders that will allow bank statements as an alternative form of verifying income, the premium loans are still owned by Fannie Mae & Freddie Mac or insured by the FHA, VA or USDA.

Many policies also have an «automatic premium loan», provision that is activated to pay overdue premium.

A whole life, in contrast, can be set up for an «automatic premium loan» if you should miss your payment.

Policy loans and automatic premium loans, including any accrued interest, must be repaid in cash or from policy values upon policy termination or the death of the insured.

In the event that a premium payment is not received within 31 days after the premium due date, an automatic premium loan will be established against the plan so that the policy will not lapse.

Common riders are accelerated death benefits, accidental death benefits, automatic premium loan, guaranteed insurability, and premium waivers.

This is referred to as an automatic premium loan.

Commonly referred to as an «automatic premium loan», if no premium payment has been received by the end of the grace period, such a loan is issued to pay the missed premium.

(Your policy may provide for automatic premium loans, which means that if you don't pay your premiums on time, the insurance company will automatically create a loan against your cash value to pay the premium and keep your policy in effect.)

Most ordinary life policies are issued with an automatic premium loan provision that authorizes the company to automatically pay the premium by borrowing against the cash value if the premium remains unpaid at the end of the thirty - one - day grace period.

Policy loans and automatic premium loans, including any accrued interest, must be repaid in cash or from policy values upon surrender, lapse or the death of the insured.