Sentences with phrase «surrender value of your policy if»

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.

Not exact matches

A life insurance policy's cash value is essentially the amount of money you would receive if you decided to give up the policy to the insurer, or surrender your coverage.

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.

These policies all generally have a cash value component, which is essentially the surrender value of the policy (if you give it up before its maturity or your death), and is the primary reason permanent life insurance policies are more expensive than term policies.

If a policy is cancelled, the insurance company no longer needs to keep the reserve to fund the policy in the later years, so it will refund to you the overpayment of premiums, called the cash surrender value.

When the insured individual gets older, say age 75, if the objective of protection is no longer an issue, the insured has the option to surrender his policy and tap into the cash value as a source of income.

Term - to - 100 is similar to whole life, except without any refund of the cash surrender value if you cancel your policy.

Use of the accelerated death benefit with permanent policies may increase countable assets if the amount advanced exceeds the cash surrender value.

A life insurance policy's cash value is essentially the amount of money you would receive if you decided to give up the policy to the insurer, or surrender your coverage.

A surrender charge is a hold back amount that an insurer charges against the cash values of a life insurance policy for the first 8 to 10 years, if funds are withdrawn early.

Include the death benefit and cash surrender value — if any — of each policy, as well as the names of the insurance companies and the beneficiaries.

If you decide to end the policy, you get some of the savings back (the cash surrender value).

The benefit of combining the two insurances into one policy is you get life insurance death benefit coverage, help with your long - term care services, cash value growth that can be accessed via policy loans, with full cash surrender value plus return of premium if necessary.

You can take out a loan on a life insurance policy's cash surrender value if you're in need of immediate funds.

A policy's cash value is essentially the amount of money you would receive if you surrendered the policy to the insurer, and this amount can be borrowed against or used to pay premiums.

You can also terminate the policy (or «surrender» it) if you want to, and get part of the accumulated funds, or you can sometimes borrow money against your policy's cash value.

These policies all generally have a cash value component, which is essentially the surrender value of the policy (if you give it up before its maturity or your death), and is the primary reason permanent life insurance policies are more expensive than term policies.

You will NOT have to pay tax on the surrender value of your policy, if:

If the policy lapses, matures, is surrendered or becomes a modified endowment, the loan balance at such time would generally be viewed as distributed and taxable under the general rules for disbursement of policy cash values.

Some plans allow you to pay for the premium out of the cash value, so that even if your finances are tight, you will not need to surrender the policy and allow your coverage to lapse.

You will NOT have to pay tax on the surrender value of your policy nor reverse Section 80C benefits, if: You have paid your insurance policy premiums for at least 2 years after buying the policy.

The downside is that if your cash value runs out, you can get stuck paying the full cost of insurance and there's no surrender value to the policy.

Policies have a surrender period during which, if you withdraw part of the cash value or decide to give up your coverage, you will pay fees.

At the end of the guarantee period, if only the required premium has been paid, the policy may lapse for insufficient cash surrender value.

If a policy of insurance has been or shall be effected by any person on his own life or upon the life of another person, the policyowner shall be entitled to any accelerated payments of the death benefit or accelerated payment of a special surrender value permitted under such policy as against the creditors, personal representatives, trustees in bankruptcy and receivers in state and federal courts of the policyowner.

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.

Borrowing more than you've invested in a policy as a result of growth in the cash value over time can cause a «tax event» to occur if you surrender or cancel your policy at some point.

2 The adjusted total premium is the initial single premium plus any underwritten increases, less any partial surrenders and any applicable surrender charges in excess of policy gain and any loans and accrued loan interest, The death benefit guarantee will not apply if the sum of any outstanding loans plus accrued loan interest is greater than the policy's cash value, The death benefit guarantee will not apply if the sum of any outstanding loans plus accrued loan interest is greater than the policy's cash value.

If you decide to surrender or reduce the value of the policy you now own and replace it with other insurance, be sure that:

In case of a lapsed policy, policy holder has an option to either reinstate the policy within 2 years and restore the benefits or surrender the policy and receive the Surrender Valuesurrender the policy and receive the Surrender ValueSurrender Value, if any.

In this situation, consider having your children own the life insurance policy, because, if the parent (s) become institutionalized, the cash value of this policy will be includable in their assets and may have to be withdrawn, or the policy surrendered in order to pay for long - term care expenses.

The cash value of a life insurance policy accumulates tax deferred, but if you surrender the policy, you'll incur an income tax liability for funds that exceed the premiums you have paid.

Second, if a policy lapses or is surrendered with an outstanding loan, and the amount of the loan plus the cash surrender value is more than the sum of premiums paid, the excess will be taxable.

It may allow you to receive more money than if you cancelled or surrendered the policy for its cash value, but less than the face value — or death benefit — of the policy.

Surrendering a policy makes sense only if the amount (surrender value) received on doing so and invested in another investment avenue which can generate a better return than the policy would have on completion of tenure.

If you surrender the policy, you are entitled to some of that cash value.

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.

Compare that to the potential value they could realize if they just surrendered the policy or took a loan out on the policy (both affected by the cash value of the policy).

If the policy has a cash value, Mostly Mutts Animal Rescue would have the option of either holding the policy until the maturity date or surrendering the policy to receive the policy's current cash value.

If the policy has a cash value, Grey Muzzle would have the option of either holding the policy until the maturity date or surrendering the policy to receive the policy's current cash value.

If you fail to revive your policy during the allotted period then the surrender value of the same is paid to you but surrender charges are deducted from the same.

If the policyholder cancels the policy before the end of the surrender period, it is not likely the policyholder will receive any amount of the cash value because these costs are incurred by the insurance company to set up the policy.

The life insurance cash value is the amount of money you are given if you cancel (surrender) the policy before you die, while the face amount (death benefit) is the amount your beneficiaries will be paid upon your death.

Surrender value is the amount the holder of a life insurance policy will get if he exits the policy...

They are often less expensive than permanent types of life insurance, yet, like many permanent policies, they still may offer cash surrender values if the insured doesn't die.

Some types of loan have a cash surrender value, this is the amount that an insurance company will pay out to the policy holder if the life insurance policy is terminated before it reaches maturity.

If you have paid premium for more than three consecutive years, then a surrender value could be payable to you — depending on the type of life insurance policy.

The net cash values are available to the policy's owner in the form of policy loans and surrender value if the policy is cancelled.

If you are wondering how to obtain the cash surrender value of term life insurance, the first step is selecting a policy that does offer what you want at premiums that will fit your budget.

The main purpose of the legal reserve is to provide lifetime protection, but because more money is collected in premiums in the early years of a policy than is needed to cover the mortality charge, level - premium policies develop a cash value, which the policyholder can borrow against, or can surrender the policy for its cash value if the policyholder no longer wishes to continue the life insurance policy.