Sentences with phrase «premium paid for life insurance policies»

Premiums paid for all life insurance policies are exempt from tax up to a maximum of Rs 1.5 lakhs under Section 80C of the Income Tax Act, 1961.

Dividends are not deemed as taxable distributions, but a refund of a portion of the premiums paid for the life insurance policy.

Premiums paid for all life insurance policies, including that for a term insurance plan are exempt from taxation under Sec 80 C of the Income Tax Act, 1961 upto a maximum of Rs 1.5 Lacs.

While the premium that is paid for policies that are offered by the Life Insurance Corporation of India makes the policy holder eligible for tax deduction, premiums paid for life insurance policies that are offered by private companies can also exempt policy holders from paying tax.

Under Section 80C, premium paid for any life insurance policy taken qualifies for tax deduction.

For example, under Section 80C, the annual premium you pay for your life insurance policy, can be deducted from your total income, thereby bringing down your tax liability.

That's because life insurance dividends are a return of premiums that you previously paid for the life insurance policy and the life insurance dividends reduce the cost of your life insurance policy and are not taxable on your tax return until they exceed the net premiums you paid for the life insurance policy.

Not exact matches

Anyone holding a leverage life insurance annuity, or a 10/8 arrangements (another leverage insurance product) will now be subject to accrual - based taxation and no deduction will be allowed for any portion of the insurance premium paid on the policy.

For retirees who are still paying off large loans (think failed business ventures or real estate deals), a guaranteed level - premium term life policy is ideal, said Scott Simmonds, a fee - only insurance consultant in Saco, Maine.

Another thing you are paying a higher premium for when you buy a traditional whole life insurance policy is consistency.

Cash value life insurance policies are typically permanent, meaning you have coverage for the entirety of your life so long as premiums are paid.

This means that you can purchase a significant amount of accidental death insurance for a much lower premium than you would pay for a traditional life insurance policy.

For some permanent life insurance policies, you're also able to pay premiums using the policy's cash value.

Permanent life insurance refers to a set of life insurance policies that provide coverage for your entire lifespan, so long as premiums are paid.

Permanent insurance, which includes whole life and universal insurance policies, is for life: It provides a death benefit for as long as you pay the premium, but also may include cash value that can be accessed during the insured person's lifetime.1

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.

The cash value of a universal life insurance policy accumulates based on the amount of premium paid, monthly deductions for policy costs and an interest rate that is declared by the insurance company.

A portion of your premium pays for life insurance coverage equal to the face value of the policy.

When you purchase term life insurance, you agree to pay recurring premiums in return for the commitment by the insurance company to pay a death benefit if the insured happens to die during the term that the insurance policy is in effect.

Permanent life insurance covers you for your entire life so long as you continue to pay the premiums, and is a category that encompasses several distinct policies.

The two primary categories of life insurance policy are term and permanent, with term policies only offering coverage for a fixed period of time, while permanent policies last so long as you continue to pay the premiums.

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.

Cash value life insurance policies are typically permanent, meaning you have coverage for the entirety of your life so long as premiums are paid.

Universal life insurance is essentially a version of whole life insurance but with the added flexibility of using the policy's cash value to pay for premiums.

Permanent life insurance refers to a set of life insurance policies that provide coverage for your entire lifespan, so long as premiums are paid.

For some permanent life insurance policies, you're also able to pay premiums using the policy's cash value.

Each time you pay premiums for a cash value life insurance policy, such as a whole or universal life insurance policy, part of the premium is put towards the cash value.

Term life insurance policies can be purchased to cover nearly any period of time, and will stay in effect for the entire period as long as you continue to pay the premiums (the cost of the policy, which can be paid on a monthly or annual basis).

When you pay your insurance premium for a permanent life insurance policy, the money is generally allocated in three portions:

A return of premium life insurance policy can work for someone who can afford paying a little extra each month and wants a relatively low cost forced savings vehicle, but may not be right for someone who just needs a basic term life insurance policy to protect their family and is more budget - sensitive.

Whole life insurance is a type of permanent life insurance policy that provides coverage for your entire lifetime, as long as you pay your premiums.

Term life insurance lasts a set number of years and then expires; a whole life policy lasts for as long as you pay the premiums.

is a type of permanent life insurance policy that provides coverage for your entire lifetime, as long as you pay your premiums.

Unlike permanent life insurance policies which remain in effect for your entire life (assuming your premiums are paid on time), term life policies remain in effect for a specific term or period of time.

This means that you can purchase a significant amount of accidental death insurance for a much lower premium than you would pay for a traditional life insurance policy.

A portion of your premium pays for life insurance coverage equal to the face value of the policy.

When you purchase term life insurance, you agree to pay recurring premiums in return for the commitment by the insurance company to pay a death benefit if the insured happens to die during the term that the insurance policy is in effect.

Definition: A Limited pay whole life insurance policy has a set period in which you pay premiums into the policy, either for a number of years or to a specific age.

Furthermore, there are huge commissions associated with whole life insurance policies and almost all of your monthly premiums for the first few years go directly to paying the broker whole sold you the junk policy to begin with.

Single - premium whole life (SPWL) is a type of life insurance in which a single sum of money is paid into the policy in return for a death benefit that is guaranteed to remain paid - up for the remainder of your life.

A better options may be to opt for a 20 year term life insurance policy and deposit the difference in premiums into a retirement or other savings account (or use it to pay off debt).

If you are a savvy investor and comfortable with risk, it may make more sense to buy the term policy and invest the difference that you would pay for return of premium life insurance on your own.

Term life insurance is not available as a standalone policy on children (because the term would likely be over by the time they needed income replacement for their own families), but a permanent policy will last their lifetime so long as the premiums are paid.

Paying the max life insurance premium allowed in the first few years of a policy will really tilt the policy in your favor for the life of the product.

The return of premium rider, available for return of premium life insurance policies, and also on certain long - term care policies, disability insurance, etc., will return all of your premiums paid over the life of your policy should the term come to an end or should you wish to surrender the policy.

Guaranteed acceptance policies are typically whole life insurance policies, meaning they offer coverage for your lifetime so long as you continue to pay premiums.

The two primary categories of life insurance policy are term and permanent, with term policies only offering coverage for a fixed period of time, while permanent policies last so long as you continue to pay the premiums.

Initially, the premiums paid on cash value insurance, such as whole life insurance rates, are higher than those associated with term insurance, given that term insurance payments are used just to pay for current insurance coverage and not to build up cash value in the policy.

Permanent life insurance covers you for your entire life so long as you continue to pay the premiums, and is a category that encompasses several distinct policies.

Universal life insurance offers lifelong coverage, provides flexibility when it comes to paying premiums and choices for how the policy's cash value is invested.