Sentences with phrase «surrender value of the contract»

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.

The net surrender value of any contract shall be determined with regard to surrender charges but without regard to any policy loan.

The CVAT stipulates that the cash surrender value of the contract can not exceed the net single premium required to fund future benefits.

Not exact matches

Generally speaking, loans and partial surrenders from MECs result in immediate taxation to the extent that the cash value of the contract exceeds the premiums paid.

In terms of taxation, the excess of the cash surrender value of the policy (plus any outstanding loans) over your basis in the contract is treated as taxable income.

Contract - a mutually agreed upon arrangement between two Individuals whereby their reciprocally inequitable value scales have led them to trade marginal units of something they have for units of something they don't have which is of greater perceived personal value than the marginal units being surrendered; a voluntary, bilaterally beneficial interaction of trade

This value grows at a stated percentage rate and can provide an increase to the contract value at the earlier of the first owner's death or at the end of the surrender period.

This benefit includes a choice of two Withdrawal Base1 growth options — 10 % with no interest credits added or 7.5 % plus an additional dollar amount of interest credits annually, minus any withdrawals.2, 3 In addition, ForeIncome offers a Guaranteed Minimum Surrender Value (GMSV) 4 which has the potential to increase contract value but terminates on the GLWB activation Value (GMSV) 4 which has the potential to increase contract value but terminates on the GLWB activation value but terminates on the GLWB activation date.

You may withdraw up to 10 % of your policy's accumulated contract value each year after the first year without incurring a surrender charge.

Cash value life insurance, whether whole life, IUL, or VUL, allows for the tax - free growth of funds in a policy's cash account unless the policy is canceled or surrendered, transferred or assigned to another owner, or the IRS no longer designates the policy a life insurance contract.

If a policy with no cash surrender value is sold (for example a term life insurance contract), the policy premiums would have largely covered just the cost of insurance, so that the proceeds received from the sale of the policy would all be capital gains.

Gain on a full surrender Gain on partial distributions IRA distributions TSA / ORP distributions Correction of excess contributions to IRAs Conversion of IRA assets to a Roth IRA Gain on surrender of Paid Up Additions (PUAs)(Note: Automatic surrender of PUAs for Value Pay is not a taxable event) Processing of Non-Forfeiture Option (NFO) to Extended Term Insurance (ETI) or Reduced Paid Up (RPU) Interest earned on dividend accumulations Loan on a MEC Dividend used to reduce loan interest on a Modified Endowment Contract (MEC) Dividend used to reduce loan on a MEC Compound of loan interest on a MEC Gain recognized on lapsed contract with a loan Collateral assignment on a MEC Non-qualified Annuity (NQA) Collateral Assignments Special interest paid on money held too long Interest earned on advance premiums 1035 exchange without paying off loan first Earnings on non-individual owner contracts for which an exception under section 72 (u) of the Internal Revenue Code does nContract (MEC) Dividend used to reduce loan on a MEC Compound of loan interest on a MEC Gain recognized on lapsed contract with a loan Collateral assignment on a MEC Non-qualified Annuity (NQA) Collateral Assignments Special interest paid on money held too long Interest earned on advance premiums 1035 exchange without paying off loan first Earnings on non-individual owner contracts for which an exception under section 72 (u) of the Internal Revenue Code does ncontract with a loan Collateral assignment on a MEC Non-qualified Annuity (NQA) Collateral Assignments Special interest paid on money held too long Interest earned on advance premiums 1035 exchange without paying off loan first Earnings on non-individual owner contracts for which an exception under section 72 (u) of the Internal Revenue Code does not apply

With an indexed annuity, you may be able to withdraw up to 10 % of the contract value each year with no surrender charges.

MARKET VALUE ADJUSTMENT — An MVA will apply, only during the Surrender Charge Period, to any partial withdrawals in excess of the Maximum Free Partial Withdrawal amount and at the time the Contract is surrendered.

A provision in which a certain percentage of a policy or contract's accumulated value is subtracted from the surrender proceeds if a policy is cancelled within a specific number of years following issuance of the policy or contract.

A contract falls within the cash value corridor of this subsection if the death benefit under the contract at any time is not less than the applicable percentage of the cash surrender value.

A contract meets the cash value accumulation test of this subsection if, by the terms of the contract, the cash surrender value of such contract may not at any time exceed the net single premium which would have to be paid at such time to fund future benefits under the contract.

Whole Life contracts run for the whole of the policyholder's life and accumulate a monetary value which is paid out when the contract matures or is surrendered.

With an indexed annuity, you may be able to withdraw up to 10 % of the contract value each year with no surrender charges.

It states: «Guaranteed death benefits and values available upon surrender, if any, for the illustrated premium outlay or contract premium shall be shown and clearly labeled guaranteed... The guaranteed elements, if any, shall be shown before corresponding non-guaranteed elements and shall be specifically referred to on any page of an illustration that shows or describes only the non-guaranteed elements.»

Tax Deferred Growth - Variable Universal Life is tax deferred which compounds the growth of your cash value (withdrawals or surrenders of contract or cash values may be subject to tax).

Build cash value that you may use for financial needs such as retirement, college or an emergency (withdrawals or surrenders of contract or cash values may be subject to tax)

b) Discontinuance after 5 years of commencement — At the end of the period allowed for revival, the contract shall be terminated by paying the surrender value.

The determination of the cash value, both the base amount and the applicable surrender charge, in the contract can be explicit by determining the value for each surrender date (guaranteed cash values), by referring to the value of specific investments or subject to the discretion of the insurance company, which is often executed to bring cash values in line with values of the investments of the insurance company.

Non-participating contracts typically do not pay dividends and the death benefit, premiums, and surrender values will not change during the life of the policy.

According to these legal financial requirements, the insurance companies are legally bound to set up a reserve, which at all times must be equal to the withdrawal or surrender value of their total block of annuity policies or contracts, i.e. the annuity providing insurance companies must set aside funds equal to the surrender value of every annuity contract in force.

The cash surrender value is the sum of money an insurance company pays to a policyholder or an annuity contract owner in the event that his or her policy is voluntarily terminated before its maturity or an insured event occurs.

These are: • Death benefits deemed on not to increase • The maturity date payable • Death benefits that should be provided right after the maturity date is being determined • The sum amount of the total endowment benefit which includes the cash value surrendered within the maturity date that should not the very least exceed the amount payable as death benefit within the span of the contract.

[x] Different ways that can be used by a contract owner by which he can apply for cash surrender value of an insurance or annuity contract due to any lapse.

In order for the policy holder to receive his or her cash value, he or she must surrender the policy contract, which serves as the documentation of his or her rights and obligations in his insurance policy, to the issuing life insurance company.

Cash value life insurance, whether whole life, IUL, or VUL, allows for the tax - free growth of funds in a policy's cash account unless the policy is canceled or surrendered, transferred or assigned to another owner, or the IRS no longer designates the policy a life insurance contract.

A withdrawal will reduce your cash value and surrender value by the amount of gross withdrawal, and will also reduce the face amount of the contract (the amount paid to beneficiaries upon the insureds death) by the amount of the withdrawal as well.

This means that the life insurance coverage will no longer exists, no more premiums will be due, and the amount of the cash surrender value will be sent to the owner of the contract.

If the option exists to to take a withdrawal equal to 100 % of the cash surrender value, at Life Ant we generally like to see our clients access the surrender value in this way rather than by actually surrendering the contract.

The size of these payments are determined based on the age of the contract, size of the death benefit, and cash surrender value of the policy.

If the policy is surrendered during the life of the contract the owner will receive the sum of the cash surrender value, even though the insured is not deceased.

It's typically the current cash value of your policy minus any outstanding loans and interest fees, as well as any surrender or administrative fees listed in your contract.

If your policy has a cash value, you should make sure to receive more than the cash surrender value of your policy if you enter into a life settlement contract.

Surrender value: Buying a life insurance contract is a long - term commitment.Surrender values are available on earlier termination of the contract.The surrender value will be the greater of the guaranteed surrender value and special sSurrender value: Buying a life insurance contract is a long - term commitment.Surrender values are available on earlier termination of the contract.The surrender value will be the greater of the guaranteed surrender value and special sSurrender values are available on earlier termination of the contract.The surrender value will be the greater of the guaranteed surrender value and special ssurrender value will be the greater of the guaranteed surrender value and special ssurrender value and special surrendersurrender.

The cash value payable by the insurance company on termination of the policy contract at the desire of Policyholder but before the expiry term is known as Surrender Vvalue payable by the insurance company on termination of the policy contract at the desire of Policyholder but before the expiry term is known as Surrender ValueValue.

The cash value of any contract shall be determined without regard to any deduction for any surrender charge or policy loan.

The act of cancelling or cashing in the proceeds of an insurance contract before it becomes payable or reaches its maturity date for a surrender value.

The policy contains a fixed and guaranteed schedule of the cash values that the policyowner may borrow for any reason (such as an emergency or opportunity) at any time, or take upon surrendering the contract.