Sentences with phrase «value life insurance policy on»

Not exact matches

This clause provides that if the policyholder fails to pay the premiums on a life insurance policy, the insurance company may automatically use the accumulated cash value to pay the premiums.

In addition, the cash value buildup on a life insurance policy is generally not taxed currently, although this buildup could cause the business to be subject to the alternative minimum tax (AMT) in certain circumstances.

The cash value of a universal life insurance policy accumulates based on the amount of premium paid, monthly deductions for policy costs and an interest rate that is declared by the insurance company.

Many types of permanent life insurance policies increase in value over time based on interest rates.

In later life stages, permanent life insurance may offer, depending on the type of policy, the opportunity to accumulate cash value on a tax - deferred accrual basis, money that can be used for diverse needs.

Had the individual purchased permanent life insurance, he or she could have access to a potentially significant source of supplemental retirement income in the future (depending on the policy type), while preserving the death benefit in perpetuity (note, however, that the death benefit and cash value of a policy is reduced in the event of a loan or partial surrender, and the chance of lapsing the policy increases).

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.

Your home and retirement accounts will be counted when your estate is valued for tax purposes, and proceeds from your life insurance could be counted, too, depending on how the policy is owned and who gets the money.

As you go through this exercise, you should also consider what other resources you may have to fall back on, such as cash value in life insurance policies or home equity that you could convert to income via downsizing or a reverse mortgage.

On the other hand, if your company decides to sell the key person life insurance policy, you may have to pay taxes, depending on the size of the settlement, cash value of the policy, and the amount that's been paid in premiumOn the other hand, if your company decides to sell the key person life insurance policy, you may have to pay taxes, depending on the size of the settlement, cash value of the policy, and the amount that's been paid in premiumon the size of the settlement, cash value of the policy, and the amount that's been paid in premiums.

One of the key benefits of the permanent life insurance policy, is that the cash value grows tax deferred and withdrawals are taken out on a First In — First Out (FIFO) basis.

You can take out a loan on a life insurance policy's cash surrender value if you're in need of immediate funds.

In life insurance, the 1035 exchange is based on the IRS Code section that allows a policy holder to transfer policy cash value to a new policy without tax consequences.

Indexed universal life insurance offers greater control over the performance of your policy's cash value growth, since you're not relying on a figure determined by the insurer and their performance.

Initially, the premiums paid on cash value insurance, such as whole life insurance rates, are higher than those associated with term insurance, given that term insurance payments are used just to pay for current insurance coverage and not to build up cash value in the policy.

In some cases, cash value insurance, specifically whole life insurance, features a minimum rate of return guarantee on funds held in a policy's cash account, which is one of many whole life insurance pros and cons.

From a strategic standpoint, the popularity of cash value life insurance stems from its ability to both provide insurance protection and grow funds on a tax - deferred basis — interest and earnings in policies of this type are not taxable unless a triggering event occurs, such as surrendering the policy.

This option not only allows two individuals to be insured on the same whole life insurance policy, but it also typically has a lower amount of overall premium cost than will purchasing two separate life insurance policies of corresponding value.

Whereas whole life insurance provides fixed rates of return on the account value, at rates determined by the insurance company, variable life insurance provides the policyholder with investment discretion over the account value portion of the policy.

When you make premium payments on a cash - value life insurance policy, one portion of the payment is allotted to the policy's death benefit (based on your age, health and other underwriting factors).

With flexible requirements on the paid up additions options, the policy provides early high cash value surrender values, making Penn Mutual's whole life policy a top contender for anyone looking for the best cash value whole life insurance.

These high cash value life insurance policies are an asset and can be used as tools for acquiring even more assets, through strategic private banking, where you focus on the velocity of money.

The inner - workings of cash value life insurance consists of a life insurance policy, which is a contract between the policy owner, the insured (often the same person), and the insurer, where the insurer agrees to pay a death benefit to the policy's beneficiary, based on the owner continuing to make the policy's premium payments.

CFA's Rate of Return (ROR) service estimates «true» investment returns on any cash value life insurance policy — whole life, universal life (fixed or indexed) or variable universal life (cash values in mutual - fund - like accounts).

As a participant, the policy holder in a mutual life insurance company receives «dividends» on the cash value which is not income but rather a return of premiums.

Please give us a call today for policy illustrations from many of these excellent cash value life insurance companies and long - term care insurance providers and receive a free strategy session to see which company and policy is right for you — based on your unique needs, goals and objectives.

To set the stage for this Top 10 guide... OUR best dividend paying whole life insurance companies article includes some «stand out» companies that offer advantageous platforms for maximizing cash value accumulation while simultaneously allowing flexibility for taking policy loans on life insurance further enhancing ongoing policy performance.

Check out or Top 10 Best No Exam Life Insurance Companies article for more on permanent cash value policies that don't require medical tests or blood work.

For a more detailed idea on how you can maximize your cash value life insurance policy please request a strategy session where we will be able to give you specific advice relevant to your unique goals and objectives.

We do not agree with this life insurance disadvantage, but it is often used by those in the investment world to cast a shadow on cash value policies.

If you're thinking of buying a cash value life insurance policy, ask your agent or company for a sales illustration, which is a computer projection of future premiums, cash values and death benefits based on the current dividend scale (whole life) or current interest rates and current costs of insurance (universal life).

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.

«Say you buy a permanent life insurance policy on a child for [a face value of] $ 50,000,» said Kevin M. Lynch, an assistant professor of insurance at The American College of Financial Services, giving a hypothetical example of how such a provision would work.

Still, if a cash value life insurance policy is being used, then tax advantaged cash value accumulation is being realized regardless of the interest on the loans.

The payment flexibility you have available with a North American Universal Life policy varies depending on the face amount and its cash value, so you should talk to an insurance agent to understand exactly how flexible your policy can be.

It also suggests that when the redemption price of life insurance nears the life settlement value of a policy, careful consideration needs to be given to determine whether the additional tax burden of selling on the life settlement market justifies the transaction.

Note: Variable life insurance policy values are not guaranteed, will fluctuate based on performance of the underlying investments, and may be worth more or less than the premiums paid.

Life insurance cash value is accessible to the policy owner in various ways, depending on the policy.

Whether or not the cash value investment aspect or loan aspect of a whole life insurance policy is important depends on spending habits, investment goals, and lifestyle decisions.

The cash value held in a life insurance policy is determined by subtracting the cost of insurance and other charges levied by the insurance company from the total amount of premiums paid plus any interest or capital appreciation earned on the cash value.

In many of these cases, a term life insurance policy is often the most inexpensive choice and the full face value of the policy pays out on the policy holder's death.

In addition to the life insurance coverage that is provided with a permanent plan, this type of policy will also include a cash value component where cash can accumulate on a tax deferred basis over time.

However, this is primarily because a portion of the premium on permanent life insurance policies is going into the cash value component.

Permanent life insurance policies provide a death benefit as well as other unique features such as lifelong protection and the ability to accumulate cash values on a tax - deferred basis, similar to assets in most retirement - savings plans.

In the case of permanent life insurance policies, cash values accumulate on an income tax - deferred basis.

Many people forget about life insurance when calculating their assets, but depending on the type of life insurance and the value of the policy, it can count as an asset.

Indexed Universal Life is a permanent life insurance policy that credits you interest on your cash value based on a particular market index or a set of indiLife is a permanent life insurance policy that credits you interest on your cash value based on a particular market index or a set of indilife insurance policy that credits you interest on your cash value based on a particular market index or a set of indices.

Permanent life insurance policies will also have a monetary value component, where money can grow and compound on a tax deferred basis.

Some are focused more on the initial death benefit, while other life insurance policies focus on the cash value growth, which may create a larger death benefit when all is said and done.

These values are how much it's estimated that you could get back from the life insurance company if you choose to surrender your whole life policy (which is why they may not be called Net Account Values on the ledger and may be called something like Net Surrender Vavalues are how much it's estimated that you could get back from the life insurance company if you choose to surrender your whole life policy (which is why they may not be called Net Account Values on the ledger and may be called something like Net Surrender VaValues on the ledger and may be called something like Net Surrender ValuesValues).