Sentences with phrase «universal life policyholders»

Unfortunately for universal life policyholders, earnings in excess of basis are taxed as ordinary income rates.

What few noticed in those rosy early days was the fine print of what happens to universal life policyholders if the market does not do well.

Add in the current state of interest rates and you have a disaster in the making for universal life policyholders.

Option B Increasing Death Benefits Universal life policyholders may elect an increasing death benefit (Option B) that increases as a policy's cash values increase.

As many Universal Life policyholders faced the potential of lapsed policies, the insurance companies knew they needed to create a policy that had more guarantees built in.

Traditionally, the majority of universal life products were purchased by consumers older than 65 who paid higher face amounts for coverage, but that trend began to shift in 2008, when both the face amounts and ages of universal life policyholders dropped slightly, Theroux says.

However, variable universal life policyholders assume the risk of the underlying investments within the cash value portion of the policy, and death benefit and total cash value can rise or fall over time.

Indexed universal life policyholders benefit from tax - free contract loans that exceed the premiums paid — the accumulated loan is paid off at death by a tax - free death benefit.

Here's a guide to help you understand how universal life insurance works, how it can go wrong, and how to avoid the common horror story that so many non-guaranteed universal life policyholders come to us with.

In 2016, those consumers are subject to what Forbes calls a looming retirement disaster for universal life policyholders.

Option A-Level Death Benefit Universal life policyholders may elect a level death benefit (Option A) that is fixed and doesn't increase unless required to maintain a policy's status as life insurance under IRS rules.

This has caused issues for some universal life policyholders, since at one time policies were sold with maturity dates of 85 years of age.

This has caused issues for some universal life policyholders, since at one time policies were sold with maturity dates of 85 years of age.

For this reason, universal life policyholders have the option to pay their premiums (in whole or in part) using interest from the associated savings account.

This has caused issues for some universal life policyholders, since at one time policies were sold with maturity dates of 85 years of age.

Universal life policyholders may elect an increasing death benefit (Option B) that increases as a policy's cash values increase.

Universal life policyholders may elect a level death benefit (Option A) that is fixed and doesn't increase unless required to maintain a policy's status as life insurance under IRS rules.

After the first year of ownership, universal life policyholders have the option to increase, decrease or skip premium payments, so long as the cash value balance is sufficient to cover all policy expenses.

As with every life insurance policy, the universal life policyholder pays premiums.

Forbes describes the current situation as a looming retirement disaster for universal life policyholders.

In the same vein as the horror stories we've alluded to, Forbes points to a looming retirement disaster for universal life policyholders.

Even so, universal life policyholders might do well to think about something called «over loan protection,» suggests Andrew Carrillo, founder and president of Barnett Capital Advisors, a firm of certified financial planners and wealth management advisors based in Miami.

The universal life policyholder has the flexibility of remitting premiums over the cost of insurance (COI).

Don't just take our word for it, read the Forbes article, «Retirement Disaster Looms For Universal Life Policyholders».

Since life is not a static event, the Universal Life policyholder can change the amount of the periodic premium or change the face amount of the policy according to their needs.