Sentences with phrase «taken against the cash value of the policy»

Loan (Policy Loan) is a loan that the policy holder takes against the cash value of a policy.

If a policyholder has selected the automatic premium loan provision, a loan would automatically be taken against the cash value of the policy to pay the premium in the event the policy was about to lapse for nonpayment of premium.

Like whole - life, loans can be taken against the cash value of the policy.

Whole life insurance policies also allow for loans to be taken against the cash value of the policy.

NOTE: A loan is taken against the cash value of a policy, not the face value (death benefit).

Not exact matches

And don't forget that you can also access the growth of your account tax - free, by taking a life insurance policy loan (sometimes called a swap loan) against your cash value.

You'll be able to take advantage of the cash value - you may be able to borrow against it or cash your policy out completely.

Yellen advocates taking out a life insurance policy and then borrowing against the cash value of that policy.

One of the key provisions of a universal life policy is that most will allow policy holders to take out a loan against the cash value of the policy.

Some of these offer the guarantee of a minimal amount of interest, as well as the ability to take a loan out against the cash value, without lapsing the policy.

Most Universal Life policies come with an option that allows the policyholder to take out a loan / borrow money against the cash value of their policy.

It's common to also allow the policyholder to take out loans against the cash value of their permanent policy or give up («surrender») the policy in exchange for some portion of the cash value.

Surrender Charge Typically applicable to adjustable life, indexed universal life, and variable universal policies, a generally declining schedule of charges against the cash value may be imposed on the policy for a certain number of years from policy inception if the policy is surrendered, the death benefit is reduced, or in some instances, the surrender charge is taken into account in the monthly calculation to determine if the policy is still in force.»

In cash value policies, only the owner of the contract is the only person that can take withdrawals or loans against the policy.

Because these policies carry a cash value, many insurers will allow you to borrow against the investment portion of the policy in the form of a low - interest loan, or you can close out the policy entirely and take the cash value.

As with whole life insurance, you may be able to take loans against the cash value of a universal life policy, however the death benefit and cash value will be reduced by the amount of any outstanding loans and interest upon your death.

Taking out a loan against the cash value component of a variable life issuance policy has three main benefits compared to a traditional loan:

Policyholders can either withdraw or borrow against the cash value of the policy for any reason, including paying off high - interest debt, supplementing income, or even taking a nice vacation.

Loans2 or withdrawals can be taken against the cash value of a permanent life insurance policy to help with expenses, such as college tuition or the down payment on a home.

A policy owner who takes a loan against the available cash value may choose to pay back the loan with interest, or to have the amount owed deducted from the death benefit at the time of payout, or to surrender the policy and have the amount owed deducted from the available cash value.

Some whole life policies may allow you to borrow against the cash value of your life insurance policy rather than taking a withdrawal.

You may also take a loan against your policy up to the amount of available cash value in the policy.

And don't forget that you can also access the growth of your account tax - free, by taking a policy loan (sometimes called a swap loan) against your cash value.

Insurers do often require the cash value of an insurance policy to reach a certain level before you can borrow against it, commonly this will take around 10 - 15 years.

These policies often offer the option to take out loans against the accumulated cash value of your policy, which can offer an easy short - term influx of cash if you need it in exchange for a lower - than - average interest rate.

Additionally, you can borrow money against the cash value of your whole life insurance policy instead of taking out a loan elsewhere.

You are also allowed to take a lump sum as a policy loan against the cash value of your policy.

This means that you can take out a loan for your children's education against the cash value of your permanent life insurance policy.

Your child will then have the choice of keeping the policy, taking a loan against the cash value if needed, or requesting a payout.

He will be able to pay the same $ 200 monthly premium for his entire life, while potentially taking out loans against the cash value of the policy down the road to cover the cost of future premiums.

While not to take the place of a savings account, some permanent insurance products have a cash value component that accumulates interest which can be used, via surrendering the policy or borrowing against it, for future expenses such as medical bills; however, the value grows more slowly than a typical investment plan and if you don't repay the policy loans with interest, your death benefit will be reduced.

«On the other hand, if the policy performed well according to expectations, you as the policyholder could be able to start taking loans against the cash value of the policy on a tax - free basis.»

Loans or withdrawals can be taken against the cash value of a whole life insurance policy to help with expenses, such as college tuition or the down payment on a home.

Perhaps you will be able to borrow more from a personal loan since the insurance loan amount will be decided by the cash value of your plan, but then your whole credit score will be put on the line, something that is not touched while taking a loan against your insurance policy.

Be advised that when you take a loan out against your life insurance policy, the loan is subject to a market value interest rate and it also can reduce the amount of the death benefit as well as the amount of the cash value.

If you take out a loan against the cash value of your insurance policy, the amount of the loan is not taxable, unless the policy is a modified endowment contract.

Another feature of whole life insurance is that, in many cases, the policyholder is allowed to take out a loan against the cash value of his policy.

For living benefits, there is a tax - deferred cash value growth of a permanent life insurance policy, while loans or withdrawals can be taken against the cash value of a permanent life insurance policy to help with expenses.

The most important feature of a permanent life policy is that you can take a policy loan by borrowing against your cash value.

Because whole life policies have this investment and return component (known as the «cash value» aspect of your policy), you can take out loans against your cash value balance to help supplement college expenses for the kids, or an addition to the house to accommodate a growing family, to cite a few examples.

The cash value of an insurance policy builds over time, so there might not be sufficient cash value available to borrow against if you want to take out a loan in the first years of the plan.

You can take a loan against the cash value, use it as collateral, take a portion of the cash outright or surrender the policy.

You'll be able to take advantage of the cash value - you may be able to borrow against it or cash your policy out completely.

You can take a policy loan against the cash value, use the policy as collateral for a bank loan, take a portion of the cash value outright or take all the cash value and terminate the policy.

That is you can take out a loan against the built up cash value of your insurance policy.

While the insured person is alive, life insurance policies continue to take in money against the eventual payout, building value towards the eventual time when the cash value of the policy is due.