Sentences with phrase «premium paid into the policy»

We also mentioned that no taxable income (or capital gain) is realized for amounts that do not exceed the total amount of premiums paid into the policy.

Many people who buy these policies never see any positive return on premiums paid into the policy.

In addition, premiums paid into the policy at approval see a 12 % bonus immediately.

Write down the total premiums paid into the policy to date.

So even though both policies allow for fixed premiums, one is superior in that it can also pay for itself via past premiums paid into the policy.

You can withdraw premiums paid into your policy up to your basis without a taxable event.

We also mentioned that no taxable income (or capital gain) is realized for amounts that do not exceed the total amount of premiums paid into the policy.

That is not the case, even when the loan amount exceeds the total premiums paid into the policy.

So even though both policies allow for fixed premiums, one is superior in that it can also pay for itself via past premiums paid into the policy.

You can withdraw premiums paid into your policy up to your basis without a taxable event.

If you outlive the policy term, you will receive money back from the life insurance premiums you paid into the policy.

For policy amounts above $ 5,000, the deduction is the lower of the policy's cost basis (usually premiums paid into the policy) or fair market value on the date of transfer.

This policy also guarantees, if they died during the first two years, they would get refunded their full premium paid into the policy +10 % additional payment.

The cash value account accrues through premiums paid into the policy, when premiums are paid in larger amounts than the actual cost of insurance.

The universal life insurance cash value is invested in financial instruments like stocks, bonds, and mutual funds and the more premium you pay into the policy, the more money is put into the investment account.

They may also make withdrawals up to the total value of premiums paid into the policy.

So if you live longer than lets say 120 you would only receive back the «cash value» of your particular policy (the portion of your insurance premium paid into the policy that is considered cash value by the insurance company), not the death benefit portion from that particular insurance policy for example.

The total premiums you pay into the policy is referred to as your «basis.»

If you withdraw more money than the premiums you paid into the policy, you will pay income taxes on the difference.

The premiums you pay into the policy also have the potential for tax - deferred growth, building cash value that can be tapped * for emergencies or planned expenses like school tuition.

A couple ways it may be taxable is if your estate exceeds the federal estate tax exemption limit, which is $ 11.2 million in 2018, or your premiums paid into the policy came from pre-taxed dollars.

Better yet, dividends paid that do not exceed the total amount of premiums paid into the policy are viewed, by the IRS, as a return of those premiums and NOT taxable income.

Dividends paid that exceed the amount of premiums paid into the policy may likely be considered income by the I.R.S. when withdrawn from the policy.

Return of premium on all your premiums paid into the policy after a specific period of time that you can opt for if you decide you no longer want the hybrid LIFE+LTC insurance policy.

As stated in the policy, the cash surrender value will never be less than the premium you paid into the policy, less any partial surrenders and outstanding loans, including loan interest.

The company's IUL policy offers daily crediting so that premiums paid into the policy are credited to the indexing account the next business day after they are received.

The reason why a young person may decide to have a whole life policy for that length of time is because, unlike term life insurance, whole life has what is called a cash component meaning the premiums paid into the policy build up the cash value for the life of the policy.

A return of premium life insurance policy allows you to recoup some or even all of the premiums you paid into your policy if you outlive your policy's term.

In addition, the cash value growth is dynamic, and the guaranteed cash value equals the premiums paid into the policy in year 10, with the non guaranteed cash value between years 6 and 7.

Here's something else to be cautious of — some companies only return 75 % of your premiums paid into your policy.

In other words, if the dividends are in excess of the premiums you paid into the policy, then your life insurance dividends may be taxable.

So for around $ 250,000 of premiums paid into the policy, the income he received, plus the death benefit that the beneficiaries will receive, is about $ 2 million dollars.

Life insurance with return of premium riders will refund 100 % of the premiums you paid into the policy if you live to the end of the term.

If you are certified as having a chronic illness or severe cognitive impairment, AIG Life Insurer Companies will return all of the premiums paid into the policy.

If you consider the premiums you pay into the policy versus the income you can generate plus the death benefit that will be paid to your beneficiaries, an IUL policy really is cheap.

Withdrawals from your policy are income tax - free as long as you don't withdraw more than the premiums you paid into the policy.

However, the only time you will be taxed on your cash value is when you withdraw money over and above the premiums you paid into the policy.

Presidential Life Insurance Company will refund your premiums paid into the policy plus 5 % compounded.

If you have what's known as a Return of Premium Term life insurance coverage, then all the premiums paid into the policy will payout when it ends.

If the insurance company figures out you have misrepresented something on the application they can cancel your policy and refund you the premiums paid into the policy.

As stated in the policy, the cash surrender value will never be less than the premium you paid into the policy, less any partial surrenders and outstanding loans, including loan interest.

A return of premium life insurance policy allows you to recoup some or even all of the premiums you paid into your policy if you outlive your policy's term.

Further, all policy loans are free from income tax, and even most cash value withdrawals are tax - free as long as it doesn't surpass the premiums paid into the policy, i.e. your basis.

For the first two, and possibly three, years of coverage, the payoff will include the premiums paid into the policy, along with a predetermined amount of interest.

Which means during the first 2 years of the policy, if something were to happen to you, your beneficiaries would receive the premiums you paid into the policy PLUS interest.

The return of premium rider when attached will return all premiums paid into the policy at the end of the term.

Add the return of premium rider and at the end of the term, if the insured has not passed away, the policy holder will be reimbursed with 100 % of the premiums paid into the policy.

And, if he or she survives that time period, then the premiums paid into the policy will be returned.

Many term life policies also provide a feature you can add called Return of Premium that reimburses you all the premiums you paid into the policy should you live until it expires.