Sentences with phrase «reduced death benefit to your beneficiaries»

If you have not repaid the loan and you pass away, your policy will pay out a reduced death benefit to your beneficiaries based on the amount of your loan.

Not exact matches

Whole life insurance offers death benefit coverage to beneficiaries that gradually reduces the insurer's commitment as the policyholder's cash value builds.

If you have an outstanding loan on your whole life insurance policy when you die, the death benefit that is paid out to your beneficiary (or beneficiaries) will be reduced by the unpaid amount of..

For example, payment amounts typically are reduced if an annuity has a survivor feature that provides benefits to a beneficiary upon the participant's death.

If you choose to take loans or partial surrenders, the cash value and the death benefit payable to your beneficiaries will be reduced.

If you do have a loan outstanding on such a policy at the time of your death, this loan reduces the benefit amount to a beneficiary.

With the guaranteed acceptance coverage through Colonial Penn, if the insured dies within the first two years of coverage, then the amount of the death benefit paid out to the beneficiary will be reduced.

If the money is not repaid, the withdrawals will reduce the policy's death benefit — the payment to the beneficiary when you die.

The cost of insurance for the renewable term element inside a universal life insurance policy can be high in later years, but some companies reduce the cost of insurance by paying the death benefit to beneficiaries over an extended period of 30 years.

There are a few edge cases, like if the death benefit is rolled up in an estate tax or if your beneficiaries elect to receive it in installments rather than a lump sum, but for the most part the money is paid out without being reduced by taxes.

Whole life insurance offers death benefit coverage to beneficiaries that gradually reduces the insurer's commitment as the policyholder's cash value builds.

It's potentially useful if you need it, but any partial withdrawal (systematic or non-systematic) may reduce your annuity's benefits, such as your death benefit, which allows you to pass on the contract to your beneficiaries in the event of your death.

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If you have an outstanding loan on your whole life insurance policy when you die, the death benefit that is paid out to your beneficiary (or beneficiaries) will be reduced by the unpaid amount of..

It is important to note that with this guaranteed issue policy, there is a reduced amount of death benefit paid out to the policy's named beneficiary if the insured dies within three years of purchasing the policy.

Loans and partial withdrawals will reduce the cash value and the death benefits payable to your beneficiaries, and withdrawals above the available free amount will incur surrender charges.

Whole life policies offer a choice of having a level benefit (where the policy pays out the face amount and any rider benefits to a named beneficiary upon the insured's death), or a graded benefit (where the policy will pay out a reduced amount of benefit if the insured's death occurs for reasons other than an accident within the first two policy years).

In a life settlement transaction, the policy's owner transfers ownership of the policy to the buyer in exchange for an immediate cash payment and, in some instances, a reduced interest in the death benefit for the policy's beneficiaries.

The policy's death benefit will be reduced — which means less money for your beneficiary — according to how much of the long - term care benefit you use.

You can withdraw your cash value or take out a loan against it, but remember, if you die before you pay back the loan, the death benefit paid to your beneficiaries will be reduced.

If you choose to take loans or partial withdrawals, the death benefit payable to your beneficiaries will be reduced

If it's not paid back before you die, the death benefit paid to your beneficiaries will be reduced by any outstanding loan amounts.

The living benefit acts as a type of «lien» against the life insurance policy, thereby reducing the overall death benefit that is eventually paid out to your beneficiaries upon death.

Loans must be paid back with interest or the death benefit paid to the beneficiary will be reduced.

Concealing material information, or material misrepresentation, is grounds for reducing or denying an insurance benefit, and there is no point in purchasing life insurance only to leave your beneficiaries unable to collect the death benefit because you concealed your medical history (find out How to Collect a Life Insurance Payout).

Afterwards, the death benefit paid to your beneficiaries is reduced by the amount you received early.

Life insurance policy ownership rights include the ability to: A) change beneficiaries B) reduce the policy death benefit C) change address D) change payment E) withdraw cash accumulation value F) cancel / surrender the policy

If loans or partial surrenders are taken, the death benefit payable to beneficiaries will be reduced.

You also have the ability to change your beneficiary at any time, and many life insurance policies will allow you to reduce your death benefit if you no longer need the amount of coverage you initially applied for.

Shomari Hearn, a Certified Financial Planner and vice president with Palisades Hudson Financial Group in Fort Lauderdale, Fla., pointed out that you don't have to repay the loan, though you will have to pay interest each year, and any unpaid loan balance will reduce the death benefit your beneficiaries receive.

They will reduce the death benefit that is payable to beneficiaries, and can also reduce the amount that is available for loans as well as the cash value of the policy.

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.