Sentences with phrase «remaining cash value»

You can make payments if you like, pay interest only or allow the contract to pay its own interest through borrowing against remaining cash value if there's enough.

While many financial advisers remain steadfast against using life insurance for investment purposes, claiming the returns, historically, have been extremely weak compared to mutual funds and other investments, the fact remains the cash value of most whole life insurance policies grows over time.

Commuted Settlement Should immediate liquidity of remaining cash value be desired by the owner or a lump sum death benefit be desired by the beneficiary (ies), Bankers Life Insurance Company is willing to process a commuted settlement

With all FIAs, upon the owner's death any remaining cash value will be transferred to the owner's heirs.

Some insurers require the repayment of loan interest, and if unpaid, they may deduct the interest from the remaining cash value.

Instead, first withdraw (not loan) your cost basis from the life insurance policy, and then 1035 exchange the remaining cash value (earnings) to a tax - deferred annuity.

They just continue making the scheduled policy premium payments (or stop paying the premium all together) thinking the remaining cash value will carry the policy.

The premium payment and / or remaining cash value may not be enough to cover both the interest on the loan and the cost of insurance that is withdrawn each month.

This has been termed «borrowing from yourself,» and while the interest you pay on such loans actually goes to the insurance company, the fact that your remaining cash value continues to earn interest does make the process similar to being your own «banker.»

While the insurance company does charge interest on your loan, because your remaining cash value continues to earn life insurance dividends, the adjusted interest rate on the loan can often be lower, sometimes much lower, than you would pay on a comparable personal loan from a bank, home equity line of credit, or by using a credit card.

While the interest credited to your remaining cash value can offset the interest charged on the loan to some degree, if the loan isn't repaid after a long enough time there is a risk of policy cancellation.

The idea here is that because your remaining cash value after the loan has been paid out still earns interest, the actual interest rate on the loan will often be much lower than would be the case if you took out a personal loan from a bank or used a credit card.

Borrowers will have to pay interest on the loan or it can be covered by the remaining cash value of the policy.

Unlike a regular bond + call strategy which only allocates the remaining dollar amount on top of the bond value (say the bond to pay 100 is worth 80, the remaining cash value is 20), the CPPI leverages the cash amount.

They just continue making the scheduled policy premium payments (or stop paying the premium all together) thinking the remaining cash value will carry the policy.

The premium payment and / or remaining cash value may not be enough to cover both the interest on the loan and the cost of insurance that is withdrawn each month.

With a life insurance policy loan, however, interest on that loan is normally paid out of the remaining cash value (charged to the cash value) when you die.

Instead, first withdraw (not loan) your cost basis from the life insurance policy, and then 1035 exchange the remaining cash value (earnings) to a tax - deferred annuity.

If the policy lapses (terminates), all policy loans are treated as income and the remaining cash value in the policy is paid out to the policyholder and treated as income.

Surrendering a life insurance policy does not mean you can claim the face value of the policy, only that you are entitled to get the remaining cash value back.

Any remaining cash values grow at a current fixed interest rate.

You can still withdraw your cash value, but you'll have to resume premium payments to keep the policy in force or settle for a reduced benefit that the remaining cash value can support.

A voluntary return of a permanent policy which cancels the coverage inside the policy and cashes out any remaining cash value attached to the canceled policy.

The remaining cash value can remain in the plan or be taxed as a qualified plan distribution.

In some cases, policyholders have a choice as to how the benefits are paid; they may receive either a lump - sum or periodic payments, depending upon the type of claim and benefit, but they are still entitled to any remaining cash value and death benefit in the policy.

Once again, even if the life insurance policy's cash value is depleted to zero by ongoing policy loans, the lapse of the policy and the lack of any remaining cash value at the end doesn't change the tax consequences of surrendering a life insurance policy with a gain (since in essence the gains were simply «borrowed out» earlier and still come due!).

This can be especially problematic, since there won't actually be any remaining cash value to pay the tax bill that comes from this «phantom income».

If you choose to cancel your policy, any remaining cash value will be paid to the policy owner.

As a result, the lapse of a life insurance policy with a large loan can create a «tax bomb» for the policyowner, who may be left with a tax bill that's even larger than the remaining cash value to pay it.

In a whole life, universal life, or variable universal life policy, the grace period would only be effective if there was no remaining cash value in the policy, and the premium payment was due.

Have you ever had a situation where a life insurance policy lapsed due to a loan, and there was no remaining cash value but a big taxable event?

When a life insurance policy is surrendered or otherwise lapses, though, the remaining cash value is again used to repay the loan... even though the taxable gain is calculated ignoring the presence of the loan.

While the interest credited to your remaining cash value can offset the interest charged on the loan to some degree, if the loan isn't repaid after a long enough time there is a risk of policy cancellation.

The idea here is that because your remaining cash value after the loan has been paid out still earns interest, the actual interest rate on the loan will often be much lower than would be the case if you took out a personal loan from a bank or used a credit card.

While the insurance company does charge interest on your loan, because your remaining cash value continues to earn life insurance dividends, the adjusted interest rate on the loan can often be lower, sometimes much lower, than you would pay on a comparable personal loan from a bank, home equity line of credit, or by using a credit card.

This has been termed «borrowing from yourself,» and while the interest you pay on such loans actually goes to the insurance company, the fact that your remaining cash value continues to earn interest does make the process similar to being your own «banker.»

Unpaid loans will reduce the death benefit by the outstanding amount, with unpaid interest on the loan deducted from the remaining cash value.

It focuses instead on the remaining cash value of the item in question.

Upon the death of the insured, the insurance company will retain any remaining cash value.

When the policyholder dies, his or her beneficiaries receive the death benefit, and any remaining cash value goes back to the insurance company.

If you surrender the policy, then you receive all the remaining cash value (less any surrender charges), but the death benefit is no longer there.

Otherwise if you borrow too much or withdraw too much the earnings on the remaining cash value may not be enough to cover the «costs,» which then causes the cash value to decrease because costs exceed earnings till the cash value is completely drained and the policy may lapse (cancel / expire).