Sentences with phrase «value against the death benefit»

A level death benefit builds up cash value against the death benefit, reducing the amount of insurance you purchase over time.

Not exact matches

Keep in mind that if you've borrowed against the cash value of your policy and pass away, the loan will be deducted from the policy's death benefit.

If you pass away after and have borrowed against the cash value of your policy, the amount borrowed will be deducted from the death benefit.

You can borrow against the cash value, but unpaid policy loans and interest will be subtracted from your death benefit.

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.

Keep in mind that loans against the policy will accrue interest and decrease both death benefit and cash value by the amount of the outstanding loan and interest.

These policies not only provide a death benefit, but they also accumulate cash value over the course of the policy, which you can borrow against as you age.

Although we would caution against this strategy if your goal is to build your cash value and death benefit over the long term, it is a nice feature of whole life insurance as an investment.

If there are any loans against the life policy, then these amounts will reduce the face value of the death benefit when the insured passes away.

• Coverage is for life, eliminating the need to renew the policy • Provides death benefits • Cash value accumulation feature, which builds up over the life of the policy • Allows you to borrow against the policy • Allows you to surrender the policy

It is possible to take out a loan against a policy's cash value, however, if the loan remains outstanding this will decrease the death benefit.

This cash value can be borrowed against for emergency expenses or to cover premiums, but is not part of the death benefit.

In the unlikely event that a child passes away, the death benefit can be used for final expenses, or if the child requires some costly medical treatment, the cash value can always be withdrawn or borrowed against tax - free to help pay for the medical expenses.

It is important to note, however, that even though a withdrawal or a loan is not required to be paid back, if there is an unpaid balance in the cash - value component of the policy at the time of the insured's death, then the amount of that balance will be charged against the death benefit that is paid out to the policy's beneficiary.

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.»

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.

Loans against the policy accrue interest and decrease the death benefit and cash value by the amount of the outstanding loan and interest.

Keep in mind that loans against the policy will accrue interest and decrease both death benefit and cash value by the amount of the outstanding loan and interest.

This term plan helps to cover against risk from rising inflation costs that may affect the real value of the death benefits that the insured individual's family would receive.

Any cash value that may accumulate in your policy can be withdrawn or borrowed against and used for any purpose (important note: any outstanding loans or partial withdrawals that aren't paid back will reduce your policy's death benefit)

Your beneficiary is still entitled to the death benefit when you die, but there's also a cash value component you can borrow against or partially cash out after a period of time.

The cash value grows at a guaranteed rate annually and can be borrowed against to pay for certain things (such as an emergency hospital bill), but is not added to the death benefit.

[4] This is why most people choose to take cash values out as a «loan» against the death benefit rather than a «surrender.»

It will also go against the value of the death benefit.

How much cash value a whole life insurance policy can build depends on such factors as your age, how long you've owned the policy, the policy's coverage amount (death benefit), and whether there's any outstanding debt from loans against the policy.

Depending on the contract, the carriers would offer the consumer a Cash Surrender Value in return for policy surrender, or in some extreme health situations, a modest advance against the death benefit.

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.

Both types allow for tax deferment of the cash value account and allow for loans against the cash value; however, whole does not provide you the ability to increase or decrease the death benefit as you financial needs change throughout life.

The cash value of the life insurance policy represents money that is built up against the death benefit to reduce the «net amount at risk» for the insurance company.

It is important to note here, though, that any un-repaid balance in the cash value that remains at the time of the insured's death will be charged against the amount of the death benefit that is paid out to the policy's beneficiary.

While a permanent policy's cash value can be borrowed against to help with expenses such as retirement or college tuitions, the loans can reduce the death benefit and cash value of the policy and the loan interest may be charged on the amount borrowed.

Part 2: Primerica's argue against Whole Life because the Insured's beneficiaries do not receive BOTH the death benefit and the Cash Value... as if this is bad business practice.

You have to borrow against your own money and double your interest rate that you get in return, they have up to 6 months to give you a loan again which is your money in the first place, when they pay out the benefit of the insurance they only get the death benefit or the cash value but if there's a loan taken out of the cash value that gets subtracted as well as the interest rate on the loan.

I am still confused about (2) things: their claim of «renewable term policies without proving Insurability» and their argument against Whole Life that the Insured's beneficiaries do not receive BOTH the death benefit and the Cash Value.

Upon the death of the insured, the death benefit will be reduced by the value of the lien against the policy and any unpaid loan and loan interest.

You can withdraw your cash value or take out a loan against it, but remember, if you die before you pay back the loan, the death benefit paid to your beneficiaries will be reduced.

If you have borrowed against the cash value accumulation while still alive, any amount that has not been re-paid, along with interest, will be deducted from the death benefits when you die.

These policies can now offer protection against chronic illness, critical illness and nursing home care on top of the traditional death benefit and / or cash value.

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.

Additionally, you may elect to purchase the policy so that a level death benefit is purchased and the cash value accumulates «on top of» or in addition to the death benefit or you may choose to purchase a level death benefit in which the cash value acts as a reserve against the death benefit (thus lowering the actual cost you pay for the death benefit over time).

Although we would caution against this strategy if your goal is to build your cash value and death benefit over the long term, it is a nice feature of whole life insurance as an investment.

Furthermore, the death benefit is fixed, minus any outstanding loans against the cash value account.

With other types of policies, variations in dividend payments (which can be used to pay against premium), cash value, and costs of insurance in the case of universal life policies can all create variability with the amount of premium required to keep the policy in force and the ultimate death benefit.

You can borrow against the cash value, but unpaid policy loans and interest will be subtracted from your death benefit.

1Policy loans and withdrawals will reduce available cash values and death benefits, and may cause the policy to lapse or affect any guarantees against lapse.

Unlike a term life insurance policy where the benefit is only received upon death or terminal illness, Flagship Whole Life offers tax - deferred, cash - value growth that you can borrow against or cash out.

Value - accumulating whole life or universal insurance is often offered as death benefit protection with a cash value component that you can borrow against or eventually cash in by surrendering the poValue - accumulating whole life or universal insurance is often offered as death benefit protection with a cash value component that you can borrow against or eventually cash in by surrendering the povalue component that you can borrow against or eventually cash in by surrendering the policy.

Any amount of an unpaid cash value balance, however, will be charged against the death benefit that is paid out to the policy's beneficiary at the time of the insured's death.

Since a senior life insurance policy is a form of whole life insurance, you'll get many of the same benefits of a whole life policy: the policy lasts your entire life and builds cash value tax - free, you can borrow against that cash value for any reason and the death benefit is paid out tax - free to your beneficiaries.

Unpaid policy loans and accrued interest count against your total death benefit or surrender value at the time of claim or termination of the policy.