Sentences with phrase «value of a life insurance policy reduces»

While the cash value feature is an attractive option it's important to remember, though, that tapping into the cash value of a life insurance policy reduces its value and death benefit and increases the chance the policy will lapse.

Also, tapping into the cash value of a life insurance policy reduces its value and death benefit and increases the chance the policy will lapse.

Also, tapping into the cash value of a life insurance policy reduces its value and death benefit and increases the chance the policy will lapse.

While the cash value feature is an attractive option it's important to remember, though, that tapping into the cash value of a life insurance policy reduces its value and death benefit and increases the chance the policy will lapse.

Not exact matches

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).

**** Accessing cash value of a life insurance policy will reduce death benefit.

But keep in mind that loans from a life insurance policy will reduce the policy's cash value and death benefit, could increase the chance that the policy will lapse, and might result in a tax liability if the policy terminates before the death of the insured.

Generally these can be taken under one of three possible non-forfeiture options: (1) surrender for full cash value; (2) use of the cash value to purchase reduced paid - up life insurance; and (3) use of the cash value to purchase extended term insurance in the full face amount of the original policy for as long as the cash value will pay net premiums.

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.

The advantages of whole life insurance are its guaranteed death benefits; guaranteed cash values; fixed, predictable premiums; and mortality and expense charges that do not reduce the policy's cash value.

When you buy a universal life policy, if you choose a level death benefit, the insurance company uses your cash value to reduce the amount of risk it takes on your life.

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).

**** Accessing cash value of a life insurance policy will reduce death benefit.

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.

When it comes to the cash value in a life insurance policy, a loan — one that possesses either a standard or a variable interest rate — will not reduce the value of your cash account.

If you specifically want to purchase permanent life insurance, one of the simplest way to reduce costs and get the greatest value is to purchase a policy when you're young and healthy.

Although variable life insurance offers this flexibility, it is essential to understand that long - term remittance of reduced premiums can compromise the cash value and the overall status of the policy.

Whole life policies may also be surrendered and the surrender value then used to purchase a reduced paid - up amount of insurance or used to provide term insurance coverage for a set period of time (extended term).

Because whole life premiums in the early years are higher than the actual cost of insurance, the build - up of the cash value in the policy reduces the risk to the insurance company, allowing for lower premiums in later years than would be paid in a term life policy.

In the preceding example, the presence of the life insurance policy loan reduced the net cash value received when the policy was surrendered, even though it didn't impact the tax consequences of the surrender.

Be advised that when you take a loan out against your life insurance policy, the loan is subject to a market value interest rate and it also can reduce the amount of the death benefit as well as the amount of the cash value.

Borrowing against a whole life insurance policy means the amount of the death benefit and cash surrender value are reduced.

Nonforfeiture Values: The values in a life policy that the policyowner does not forfeit even if he ceases to pay the premiums; the cash value in the policy will be used in one of three ways: 1) cash value returned to the policyowner, 2) cash value buys extended term insurance, or 3) cash value buys a reduced paid - up life insurance pValues: The values in a life policy that the policyowner does not forfeit even if he ceases to pay the premiums; the cash value in the policy will be used in one of three ways: 1) cash value returned to the policyowner, 2) cash value buys extended term insurance, or 3) cash value buys a reduced paid - up life insurance pvalues in a life policy that the policyowner does not forfeit even if he ceases to pay the premiums; the cash value in the policy will be used in one of three ways: 1) cash value returned to the policyowner, 2) cash value buys extended term insurance, or 3) cash value buys a reduced paid - up life insurance policy.

While the overarching value of life insurance is the death benefit as a source of income replacement, some policies also have features that can be used to help consumers reduce risk and protect wealth from the effect of taxes, market volatility and longevity.

Insurance Products Life Insurance Cash Value: A Practical Discussion Borrowing against or withdrawing the cash value of a policy will reduce the death benefit and could put the policy at risk of lapValue: A Practical Discussion Borrowing against or withdrawing the cash value of a policy will reduce the death benefit and could put the policy at risk of lapvalue of a policy will reduce the death benefit and could put the policy at risk of lapsing.