Sentences with phrase «value loan accrues»

As with other loans, a cash value loan accrues interest until you pay it back.

Not exact matches

In that sense their main concern is with rising land values — that is, the values that do not accrue as a result of earnings on capital (the rents that typically are pledged to lenders as interest payments on the loans taken out to by the properties) but are economy - wide asset - price appreciation in specific categories.

Part of the strategy is to work with mutual life insurance companies that allow flexibility in borrowing from the policy and allow the cash value to accrue regardless of outstanding policy loans.

Compounding interest causes these debts to increase in value quickly, especially if no payments are made on the loan while interest continues to accrue.

Outstanding interest is the dollar value of the accrued interest balance on a loan.

As property price can crash, before the property is liquidated, the loan can accrue interest that exceed the home value.

The Guaranteed Cash Value (less any outstanding loan and accrued loan interest) is the minimum your Cash Value can be.

Home equity loans are a good example of this type of credit: As a homeowner, you can put your house up as collateral in exchange for borrowing against some of the value it has accrued over time to cover things like medical bills, major repairs or other unexpected expenses.

From an accounting perspective, the banks accrue charges in their income statements to reflect any expected or potential deterioration in value of their loans.

The critical downside of term life insurance, for SBA loans (also applicable to other key man insurance) is that zero cash value accrues within the policy.

2 The adjusted total premium is the initial single premium plus any underwritten increases, less any partial surrenders and any applicable surrender charges in excess of policy gain and any loans and accrued loan interest, The death benefit guarantee will not apply if the sum of any outstanding loans plus accrued loan interest is greater than the policy's cash value, The death benefit guarantee will not apply if the sum of any outstanding loans plus accrued loan interest is greater than the policy's cash value.

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.

Furthermore, even though the borrower will never owe more than the value of that home, interest accrues throughout the life of the loan.

This means that the parent will be held responsible for repaying the full value of the loan, along with any interest that accrues.

Collateral assignment secures a loan in case of the borrower's death, using the face value of the policy (rather than accrued equity, as is the case with whole life insurance).

Since you do not make monthly mortgage payments on a reverse mortgage like you do on a normal, forward mortgage, people make the incorrect assumption that after the borrower dies, their heirs will have to pay back the value of the loan and all interest accrued.

Policy loans accrue interest and reduce cash value and death benefit.

Cash value can be accessed through loans and partial surrenders which accrue interest and, if not paid back, will reduce the policy's death benefit and cash value.

Cash value accrues in the policy and it can provide you with a source of potential cash flow in the form of loans or withdrawals.

When activated, the Overloan Protection Rider converts the policy to a «paid - up» status and prevents the policy from lapsing when the policy's cash surrender value is insufficient to cover monthly deduction charges due to significant loans or if any outstanding loans plus accrued interest exceed cash value.

* Cash value is accessed via policy loans which accrue interest and reduce the cash value and death benefit.

If the combined loan principal and accrued interest exceed the current cash value of the policy, the policy will lapse.

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

Of course, loans go against the policy value, and interest accrues until it is paid back.

In addition, if the loan balance and accrued interest exceed the cash value of the policy, it will be terminated.

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.

Loans accrue interest and unpaid loans plus interest and withdrawals will reduce the death benefit and cash vLoans accrue interest and unpaid loans plus interest and withdrawals will reduce the death benefit and cash vloans plus interest and withdrawals will reduce the death benefit and cash value.

Whole life insurance accrues cash equivalency values that can be borrowed against to take out a bank loan.

Yet, unless paid out in full at signing, a policy needs years of investment via premium payments and the overall financial growth of the company to accrue enough value for an appreciable loan.

Policy loans do accrue interest, and any outstanding policy loans and interest will reduce the death benefit and cash value (if applicable).

1 The maximum loan value is the cash value as of the date of the loan, less any existing loan and accrued interest and interest on indebtedness from the date of the loan to the next policy anniversary date.

Perhaps what needs to be said is that the accrued interest is also deducted from the cash value — either in advance (at the time the loan is taken) or in arrears (at the end of 12 months if it has not been repaid)-- and added to the loan principal.

Some policies will even allow you to take out a low - interest loan against your accrued value.

Collateral assignment secures a loan in case of the borrower's death, using the face value of the policy (rather than accrued equity, as is the case with whole life insurance).

If loan amount plus accrued interest is greater than the surrender value the policy will be foreclosed.

A permanent life insurance policy, such as whole life or universal life, can offer you this option, and can be used as loan collateral, or to accrue cash value to be used in case of emergency.

Your funeral expense life insurance policy can accrue cash value over time and can be leveraged against a loan by the policyholder.

Loans taken from the policies also accrue interest, which will further decrease the policy's cash value and death benefit.

You may also get a loan based on the value of your permanent policy or withdraw accrued cash.

Any outstanding loan, with accrued interest, will be subtracted from the death benefit or cash value, upon death or surrender, respectively.

Whole life insurance will accrue a cash value, pay dividends, and withdrawals and loans can be taken against it.

While the loan is from your own policy value, the accrued interest goes directly to the insurance company.

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.

Policy loans do accrue interest, and any outstanding policy loans and interest will reduce the death benefit and cash value.

The plan also offers loan facility on accrued surrender value.

Part of the strategy is to work with mutual life insurance companies that allow flexibility in borrowing from the policy and allow the cash value to accrue regardless of outstanding policy loans.

You are charged interest on the loans; many folks pay that out of the policy's accrued cash value, too.

Withdrawals or loans in excess of the cost basis create a taxable event if the policy is later surrendered or lapses for nonpayment of premium (or insufficient cash value due to accrued interest on loans).

Further, by choosing a non direct recognition mutual company, the cash value will continue to accrue interest and dividends on the total cash value, regardless of the policy loan.