Sentences with phrase «surrender value results»

In this case the amount received from the insurance company inn excess of the surrender value results in a gain at the time of receipt of such amount which is transferred to Capital accounts of the partners in the profit sharing ratio.

Not exact matches

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.

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.

Immediately after you buy an annuity, the cash surrender value is less than the amount paid for it, so this approach would result in a smaller amount of taxable income when you convert the IRA.

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.

Results were based on an evaluation of the realized dividends and cash surrender values of a Whole Life policy issued 1/1/82 — 12/31/16 (35 - year old male, $ 250,000 face amount, select preferred rating, annual premium of $ 3,585) and the historical results of the S&P 500 and Bloomberg Barclays US Aggregate BondResults were based on an evaluation of the realized dividends and cash surrender values of a Whole Life policy issued 1/1/82 — 12/31/16 (35 - year old male, $ 250,000 face amount, select preferred rating, annual premium of $ 3,585) and the historical results of the S&P 500 and Bloomberg Barclays US Aggregate Bondresults of the S&P 500 and Bloomberg Barclays US Aggregate Bond Index.

The surrender value of the policy as per him is Rs 67000 and as a result, he is dissuading me from surrendering the policy as the total loss for me would be Rs 1,10,000 / -.

This results in a policy with a higher initial cash value than would be the case if the original policy were simply surrendered and a new policy purchased

It does not result in any additional benefits and has no surrender value.

Surrendering a permanent life insurance policy results in the carrier paying the policyholder any cash value in the policy.

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.

2Policy loans and partial withdrawals may reduce or eliminate Index Credits, generate an income tax liability, result in surrender charges, reduce available surrender value and reduce the death benefit, or cause the policy to lapse.

Surrendering refers to permanently withdrawn money from a policy, resulting in a smaller payout on maturation, or the discontinuation of the policy in exchange for its total value.

The accelerated growth option is the ideal solution for clients who would like to increase their pension income or realize a project with a 10 to 15 - year horizon, as a result of growth in cash surrender values.

Access to cash values through borrowing or partial surrenders can reduce the policy's cash value and death benefit, increase the chance that the policy will lapse, and may result in a tax liability if the policy terminates before the death of the insured.

The result will depend upon multiple factors such surrender value factors, no.

The end result: the policyowner never actually uses the life insurance loan directly, and finishes with a life insurance policy with a net cash surrender value of $ 0, and still gets a Form 1099 - R for the underlying gain in the policy.

The surrender value of the policy as per him is Rs 67000 and as a result, he is dissuading me from surrendering the policy as the total loss for me would be Rs 1,10,000 / -.

A life settlement is the result of selling your existing life insurance policy for more than its cash surrender value, but less than its net death benefit.

You may also need to decrease coverage to the smallest amount, but doing so may result in surrender charges on the cash value.

Changing insurance carriers or canceling the policy to take out the cash value results in a penalty called the surrender charge that is a percentage of the cash value.

Thus, the fair market value of the annuity is determined by market interest rates at the time of surrender and may result in either a higher or lower surrender value than what was projected, but never a surrender value that is less than the sum of your contributions.

Disadvantage No. 3: Surrender of the policy within the first five to ten years may result in considerable loss because cash surrender values reflect the insurance company's recovery of sales commissions and initial policy Surrender of the policy within the first five to ten years may result in considerable loss because cash surrender values reflect the insurance company's recovery of sales commissions and initial policy surrender values reflect the insurance company's recovery of sales commissions and initial policy expenses.

Furthermore, for the surrender value of a life insurance policy, there are certain conditions which, if fulfilled, will result in tax relief.

The rationale is that the surrender value and the future premiums should yield much better results than the expected maturity value of the insurance plan.

What all this means is that the cash surrender value of the VUL really isn't totally available at any point in time, since accessing it all will result in a tax liability.