Sentences with phrase «reduce policy cash values»

Outstanding loans and withdrawals, however, will reduce policy cash values and the death benefit, and may have tax consequences, so talk with your agent about the pros and cons before taking a loan out on your policy.

Outstanding loans and withdrawals, however, will reduce policy cash values and the death benefit, and may have tax consequences, so talk with your agent about the pros and cons before taking a loan out on your policy.

Not exact matches

(Keep in mind, however, that withdrawing or borrowing funds from your policy will reduce its cash value and death benefit if not repaid.)

¹ Access to cash values through borrowing or partial surrenders will reduce the policy's cash value and death benefit, increase the chance the policy will lapse, and may result in a tax liability if the policy terminates before the death of the insured.

This is known as a partial surrender, which reduces the cash surrender value of the policy and the death benefit amounts.

Please note that the policy's death benefit and cash value will be reduced by the amount of any loans or withdrawals you take.

As long as there's enough cash value to keep the policy afloat, premium payments can be reduced or even stopped completely.

While the cash value feature is an attractive option it's important to remember, though, that tapping into the cash value of a life insurance policy reduces its value and death benefit and increases the chance the policy will lapse.

Had the individual purchased permanent life insurance, he or she could have access to a potentially significant source of supplemental retirement income in the future (depending on the policy type), while preserving the death benefit in perpetuity (note, however, that the death benefit and cash value of a policy is reduced in the event of a loan or partial surrender, and the chance of lapsing the policy increases).

Also, tapping into the cash value of a life insurance policy reduces its value and death benefit and increases the chance the policy will lapse.

Policy loans and / or withdrawals also reduce the cash surrender value and policy death benefit and increase the chance that a policy will Policy loans and / or withdrawals also reduce the cash surrender value and policy death benefit and increase the chance that a policy will policy death benefit and increase the chance that a policy will policy will lapse.

Loans and withdrawals will reduce the cash value and the life insurance benefit and could increase the chance that the policy will lapse.

[Note: Pulling cash from a Whole Life policy will reduce both the total cash value and face value, until the funds are replaced with interest.]

A homeowners insurance policy with actual cash value coverage typically determines value by taking the cost to replace your personal belongings and reducing that amount due to depreciation from factors such as age or wear and tear, says the Information Information Institute (III).

Policy loans and withdrawals will reduce the contracts, cash value and death benefit and may cause the policy to Policy loans and withdrawals will reduce the contracts, cash value and death benefit and may cause the policy to policy to lapse.

Policy loans or withdrawals will reduce the policy's cash value and death benefit, and may require additional premium payments to keep the policy in Policy loans or withdrawals will reduce the policy's cash value and death benefit, and may require additional premium payments to keep the policy in policy's cash value and death benefit, and may require additional premium payments to keep the policy in policy in force.

As you can see, when you withdraw or borrow money from the policy's cash value, the insurer will reduce the death benefit accordingly.

As long as there's enough cash value to keep the policy afloat, premium payments can be reduced or even stopped completely.

Any decrease in the policy's cash value could reduce the policy's death benefit.

Loans and withdrawals reduce the policy's cash value and death benefit amount.

«MBA analysis shows that if FHA were to adopt a policy which stepped down the [annual] MIP in year 10 of the loan, reducing it to 60 basis points for the balance of the life of the loan, the net present value of cash flow to FHA would remain positive under conservative assumptions,» the April 2 letter says.

By reducing volatility and potential losses, within your contract, the Market Stabilizer Option ® can provide a level of comfort at times when the market is unpredictable and protect your policy's cash value from extreme fluctuations.

You can also reduce the face amount of a loan or surrender a certain amount of cash value to avoid incurring tax liability from a policy's lapse.

**** Accessing cash value of a life insurance policy will reduce death benefit.

Rather than miss premium payments and risk the policy either lapsing, eating away at your cash value, or being changed to a reduced paid - up policy, choosing to sell it might be the best route for your specific circumstances.

I have been researching this product for the past year and have been working with an agent that specializes in a special use of these that reduces the front loaded fees significantly and maximizes the cash value of the policy.

Of course, tapping cash values through borrowing or partial surrenders will reduce the policy's cash value and death benefit.

On the other hand, if you find yourself under a financial strain, you can reduce your premiums, or you may even be able to deduct premium payments from the cash value of the policy.

Alternatively the charity can elect to place the policy on reduced paid up status; surrender the policy immediately; or take a loan against its cash values.1

(Keep in mind, however, that withdrawing or borrowing funds from your policy will reduce its cash value and death benefit if not repaid.)

In addition, most policy loans and withdrawals are not taxable (although withdrawals and loans will reduce the cash value and death benefit).2

Of course, withdrawals or loans that are not repaid will reduce the policy's cash value and death benefit.

Because the loan will reduce the amount of available cash value in the policy, however, it will also reduce the amount of death benefit.

Policy loans accrue interest and reduce cash value and death benefit.

If the interest rate being credited to your policy decreases to the minimum rate, your premium would have to increase to offset the reduced cash value.

Cash value can be accessed through loans and partial surrenders which accrue interest and, if not paid back, will reduce the policy's death benefit and cash vaCash value can be accessed through loans and partial surrenders which accrue interest and, if not paid back, will reduce the policy's death benefit and cash vacash value.

Several cautions regarding policy loans: First, loans are charged interest and policy loans reduce the death benefit and cash value.

That means the policy loan reduces how much cash value the company recognizes.

When you access the cash value in a life insurance policy, it will reduce the cash value and death benefit.

Loans and withdrawals from a permanent life insurance policy will reduce the policy's cash value and death benefit, and may require additional premium payments to keep the policy in force.

Tapping the cash value may reduce the policy's death benefit.

Loans and withdrawals reduce the policy's cash value and death benefit and increase the chance that the policy may lapse.

But keep in mind that loans from a life insurance policy will reduce the policy's cash value and death benefit, could increase the chance that the policy will lapse, and might result in a tax liability if the policy terminates before the death of the insured.

(Note that dividends are not guaranteed and borrowing cash value from your policy requires the payment of loan interest and will reduce your cash value and death benefit.)

Keep in mind that taking money from your policy will immediately reduce the cash value and death benefit, and can lead to the need for additional premiums to be added into the policy in the future.

In this case, the cost basis is premiums paid, reduced by ongoing internal cost - of - insurance charges that were paid internally from the policy's cash value along the way.

Unpaid loans will reduce the cash value and death benefit payable, and if the policy lapses with a loan outstanding, it will be treated as a distribution and may be subject to income tax.

However, the fees and commissions can be reduced substantially when the policy is designed for high cash value growth.

You can supplement retirement income by taking loans or withdrawals from accumulated cash value (although the policy's cash value and death benefit are reduced by the amount taken, plus any loan interest charged).

In general, the cash value in a permanent policy is designed to grow, and this growth reduces the net amount at risk in a policy, which keeps the mortality cost at reasonable levels even though the actual cost per $ 1,000 of death benefit is growing every year.