Sentences with phrase «to reduce the death benefit»

We've even heard of companies reducing your death benefit by the amount you request to withdraw, not the amount they actually give you.

Loans do not reduce the death benefit if paid back, but if not the death benefit will be reduced by the amount of the outstanding loan.

Note that accessed cash values will reduce the death benefit of your policy or otherwise negatively impact overall policy values.

Some also allow you to reduce the death benefit in order to reduce the policy cost.

All withdrawals reduce the death benefit and may reduce the value of any optional benefits.

You may want to reduce the death benefit amount for reduced premiums.

Any outstanding loans on your policy will reduce your death benefit accordingly.

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

Cash value is assessed through loans and withdrawals, which reduce death benefit.

Borrowers should be aware that interest does accrue, and borrowing will reduce any death benefits paid out, unless the loan is paid back to the policy.

Further, many companies allow the cash value account to be drawn from to pay for the premiums, although this will ultimately reduce the death benefit on the policy.

The insurance company can not legally reduce your death benefit during the policy duration unless you agree to the change (you might want to do this to reduce your premium payment).

Beware that borrowing money on some universal policies may also reduce your death benefit.

Doing this will likely reduce your death benefit, so be sure to talk to your agent or financial advisor first.

The loan is accounted for within the policy itself, and the principal loan amount and corresponding interest reduce the death benefit by the amount owed.

Although this can ultimately reduce your death benefits, it is a good way to make consistent payments to your policy.

The outstanding loan amount will reduce the death benefit dollar for dollar in the event of the death of the policyholder before the full repayment of the loan.

You may even have to pay more in life insurance premiums to keep the policy in force or see reduced death benefits.

In some cases, partially withdrawing your cash value could greatly reduce your death benefit.

Chronic illness riders may reduce your death benefit faster than what you take out for benefits.

However, doing so may permanently reduce your death benefit.

You maintain a level death benefit but you also have the option of reducing the death benefit whenever you like.

This may eventually reduce the death benefit under the policy.

When make a term to permanent life insurance conversion, most of our client reduce their death benefit to $ 100,000 or so.

Essentially, the life insurance follows the amortization schedule of the loan, reducing the death benefit over time as the loan balance decreases.

In these cases, the insurer reduces the death benefit and premiums in proportion to the reduction in the cash value.

Therefore, most people reduce the death benefit significantly to keep premiums about the same, which can undermine the value of the policy in protecting the beneficiary.

Any outstanding loan, plus interest, will reduce your death benefit if you die without having repaid the loan.

During this time, the insurance company can deny or reduce the death benefit in the event there has been misrepresentation on the life insurance application.

If you fail to pay back your loan, they will reduce your death benefit by whatever the amount of the outstanding loan is.

Cash value is assessed through loans and withdrawals, which reduce death benefit.

Any advance paid will reduce the death benefit of the policy.

You can also reduce the death benefit and the periodic premium if you find you need less insurance due to life changes.

Doing this will likely reduce your death benefit, so be sure to talk to your agent or financial advisor first.

If you die without paying it off, however, the debt and interest reduce the death benefit.

Taking out a loan simply reduces the cash value of the policy and, if applicable, reduces the death benefit paid.

1 Accessing cash values, through loans and partial surrenders or by accelerating benefits for long term care benefit payments, will reduce the death benefit payable, the cash surrender value and the long term care coverage available.

A method of calculating the reduction of a VA benefit base after a withdrawal in which the benefit is reduced by the same percentage as the percentage of the withdrawal; for example, a 20 % withdrawal of the money reduces the death benefit by 20 %.

After you reach 70 or 80, the policy may pay for itself by siphoning payments from your premium cash value, reducing death benefit value until the policy cannibalizes itself.

Some policyholders find this appealing because they can access the cash value while they're still alive, although it generally accumulates interest and reduces the death benefit until you pay it back.

However, when you borrow the money based on your cash value, the amount you borrow may reduce the death benefit from the life insurance portion of your policy.

* The death benefit is collateral for a policy loan and if you die before it is repaid, the life insurance company will collect the balance that is due before determining what will go to your beneficiaries, essentially reducing the death benefit.

New York Life reduces the death benefit to pay off the loan when you die; or, you can undo the transaction by paying back the loan.

Unlike changing the dividend option, this will require completing paperwork to substantiate the request — since reducing a death benefit is no small change, as once done it is typically permanent (or at least, increasing the coverage again would likely require additional underwriting).

Loans also accrue interest which further reduces the death benefit and cash value.

While some policies are reduced on a dollar - for - dollar basis with each withdrawal, others (such as some traditional whole life policies) actually reduce the death benefit by an amount greater than what you withdraw.

And there are guidelines to follow, so that you don't inadvertently reduce the death benefit or create a tax burden1.

If your need for coverage decreases as time goes on, many companies will allow you to reduce the death benefit at least once after the policy has been «in force» for at least a year.

Policyowners who reduce death benefits within the first seven years of issue should do so only with the advice and counsel of their insurance advisers because such death benefit reductions may subject them to adverse tax consequences under the Modified Endowment Contract (MEC) rules.

The cash value component of the policy may be in addition to the death benefit should you die (you get face insurance value * plus * the benefit) * OR * serve to effectively reduce the death benefit (you get the face value, which means the cash value effectively goes to subsidize the death benefit).