Sentences with phrase «purpose of a life insurance contract»

The purpose of a life insurance contract must also be legal — and it should not go against public policy.

Not exact matches

I want to buy a life insurance or life insurance contract for the purpose of growing cash value, which is the best option?

When someone puts money into a life insurance contract for the purpose of growing their cash value, then the goal is actually to buy as little life insurance as possible.

If any contract which is a life insurance contract under the applicable law does not meet the definition of life insurance contract under subsection (a), the excess of the amount paid by the reason of the death of the insured over the net surrender value of the contract shall be deemed to be paid under a life insurance contract for purposes of section 101 and subtitle B.

Unlike general insurance contracts, life insurance contracts are generally long term in nature, traditionally bought with a dual purpose of risk cover and long term savings.

Any withdrawals taken from a life insurance contract are tax free up to the total amount of the cost basis (the amount of money put into the policy) with the gain being considered the last part of the contract to be withdrawn for tax purposes (FIFO accounting).

Loan — Life insurance contracts with a cash value typically allow the policyholder to borrow money against the cash value, tax free at time of loan and for any purpose.

(a) General rule For purposes of this title, the term «life insurance contract» means any contract which is a life insurance contract under the applicable law, but only if such contract --

For purposes of this section, the following amounts shall be treated as an amount paid by reason of the death of an insured: (A) Any amount received under a life insurance contract on the life of an insured who is a terminally ill individual.