Sentences with phrase «used as the death benefit»

After your long - term needs are deducted from all your available resources, the remaining amount is used as the death benefit for your insurance policy.

Not exact matches

No medical exam whole life insurance is typically used as a form of final expense insurance, as coverage is lifelong and death benefits are generally limited to a maximum of $ 25,000 or $ 50,000.

At certain points during the term of coverage, such as your birthdays, you can increase the policy's death benefit and premiums will be determined using your initial health rating.

Accelerated death benefits are also known as «living benefits» since you are able to use portions of your policy's death benefit while you are still alive.

The authors and editorialist express grave concerns that there will be many needless premature deaths as well as preventable heart attacks and strokes if patients who would clearly benefit from statins are not prescribed the drug, refuse to take the drug, or stop using the drug because of ill - advised adverse publicity about benefits and risks, which may include misplaced concerns about the possible but unproven small risk of diabetes.

At certain points during the term of coverage, such as your birthdays, you can increase the policy's death benefit and premiums will be determined using your initial health rating.

In a nutshell, while most whole life insurance is fixated on maximizing the death benefit of a policy and just allowing cash values to grow over time, strategic self banking focuses on maximizing life insurance cash values, so the whole life insurance plan can be used strategically as a savings and personal financing vehicle for the purpose of recapturing your cost of capital incurred when having to deal with third party lenders or using your own cash.

As an added benefit, the life insurance death benefit of the new hybrid policy would pay off her mortgage if she passed away, assuming she didn't use the policy for long - term care.

No medical exam whole life insurance is typically used as a form of final expense insurance, as coverage is lifelong and death benefits are generally limited to a maximum of $ 25,000 or $ 50,000.

The likely reason for this is life insurance is viewed as using cash to purchase a death benefit, whereas an annuity is all about converting a lump sum into an income stream.

This type of policy has a number of benefits as a life insurance solution, and can be used as a savings and investment tool in addition to providing death benefits to your beneficiaries.

Since life insurance only pays out a death benefit when there is a death, the only way to cash in early is to use the life insurance as a savings vehicle.

The death benefit to be received by the trust beneficiaries may be used to cover estate taxes OR PROVIDE FUNDS for business continuity succession planning AS A KEY PART OF family business succession planning.

With a number of ways to use the money that builds up in the cash value account, such as taking out a life insurance loan or paying insurance premiums, the flexibility these policies offer make them attractive to individuals looking to build up savings while at the same time securing insurance coverage providing leverage in the form of a death benefit payout.

The death benefit is essentially a «target» using an assumption of cash value performance, such as a 4 % annual rate of return.

If the cash value performs well, it can be used to increase the death benefit, withdrawn as cash or used as collateral for a loan.

As you use your cash flow to pay back your loan with interest, you are increasing your death benefit and cash flow growth.

If cash value life insurance is being used, the cash value can be used to repay the loan depending upon the type of policy as can a portion of the death benefit.

Accelerated death benefits are also known as «living benefits» since you are able to use portions of your policy's death benefit while you are still alive.

You see, an insurance company is protecting itself with these caps from a policyowner who is terminally ill trying to get as much death benefit as possible through the use of paid - up additions.

The death benefit can be used by the estate to cover lingering estate expenses, such as the medical expenses referred to in your example.

A simplistic example of how the rider could be used might be as follows: A 50 - year - old male purchases a whole life policy with a yearly base premium of $ 4,000 dollars for a $ 200,000 death benefit.

A beneficiary designation form is a legal document and will be used by the insurer to determine who will receive the death benefit if you pass away during the period of coverage (as well as how much they will receive).

Policy loans are also available using your cash value as collateral, but keep in mind that loans affect the amount of your death benefit.

Lincoln Financial's policies allow you to take out tax - free life insurance loans using your cash value as collateral, though withdrawals affect the amount of your death benefit.

If you pay the death benefit as an income stream, the proportioning rule is used to calculate the tax - free and taxable components.

Because of that, permanent life insurance policies are often used as financial planning tools that can serve many more purposes than just simply paying out a death benefit.

One of the best features of cash value life insurance is that you can borrow money using your death benefit as collateral.

Dividends earned as a policyowner can be used to buy paid up additions, which will increase the death benefit, further increasing the LTC benefit pool.

If you are diagnosed with a chronic illness or severe cognitive impairment (Alzheimer's, Dementia), the rider allows you to accelerate a portion of your death benefit to be used either as reimbursement or cash indemnity.

The life insurance companies also offer solutions such as chronic illness riders AND long term care riders, which allow a portion of the policy death benefit to be used for long term care costs while also preserving a portion of the death benefit coverage.

You can use whole life or universal life insurance as a long term investment vehicle that provides continuous, stable growth along with tax advantages and a death benefit.

Using this design, the low - expense whole life policy has death benefits and cash values, based on the current 6 % dividend rate, as illustrated in Table 1.

Instead they can choose to take out a life insurance loan using their death benefit as collateral.

Some investment - like options, such as using life insurance as an investment vehicle, have costs that cover the insurance (the death benefit) but very little in terms of management.

• Allows policyholder to lock in a guaranteed death benefit for specific time required for coverage • Provides a guaranteed tax free death benefit for beneficiaries • Provides a vehicle to pass along wealth to children or grandchildren • May be used to cover estate taxes, fees and outstanding medical bills • May be set up as a charitable trust • May be used for cash value accumulation • Ideal for a Buy / Sell Agreement • Provides a policy which is both flexible and affordable

Some companies may want to add an additional layer of benefits to the employee, and might use the life insurance policy as a makeshift deferred benefit plan, dedicating a certain percentage of the death benefit to the employee's beneficiaries, rather than just the company.

The death benefit from a life insurance policy can be used for immediate needs such as paying for medical expenses and a funeral as well as longer term needs such as mortgage assistance, funding educational expenses, replacing lost income and potentially maintaining other investments.

In order to limit the portion of the premium that is used to provide death benefits to a designated beneficiary, use of the table is limited to contracts under which any non-spouse designated beneficiary must be irrevocably selected as of the required beginning date.

Not only can you reduce your death benefit and withdraw from the cash value, you can use the cash value as security on a life insurance loan, or even sell the policy to a company that buys policies.

When a business owner applies for a business loan and wants to use their death benefit as collateral, the loan company must then ascertain whether, should this owner die, will it affect the business and cause the loan to default.

We have found that consumers are not only using indexed universal life insurance for the death benefit but also as a way to grow their investment portfolio.

The policy owner needs a death benefit that will continue to increase, for example when insurance is being used as part of a business succession plan.

In order to limit the portion of the premium that is used to provide death benefits to a designated beneficiary, the proposed regulations provided that use of the table is limited to contracts under which any non-spouse designated beneficiary must be irrevocably selected as of the required beginning date.

There is a variety of features that come with Term Life Express, such as the accelerated death benefit, which allows you to use up to 92 % of your death benefit if you are terminally ill and not expected to live longer than 2 years.

An existing life insurance policy can be used to satisfy the lenders requirements as long as the amount of death benefit on the policy is enough to cover the loan amount required.

However, like other types of whole life insurance, you can not withdraw from the cash value during your lifetime, it can only be used to pay premiums or as a death benefit.

Because the typical universal policy has a much greater focus on level premiums and level death benefit, there is little to no cash remaining in the policy after several years as it's used to pay the difference in mortality cost as the insured ages.

Also, when you borrow from your accumulated cash value, it may jeopardize the value of your death benefit because the insurance company uses your death benefit as collateral on your policy loan.

Insurers can pay death benefit in installments over a definite period of time and at a defined rate of interest, as approved under the «file and use» procedure on the declining balance if such an option is provided at the inception of the policy.