Sentences with phrase «value of the death benefit when»

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.

Not exact matches

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.

Naturally, a policy buyer would prefer the insured to be elderly, in poor health, with a policy that has low cash value and a high death benefit, because all of these factors might increase the buyer's yield - to - maturity on the policy when you die.

Make sure the policy you choose has the coverage you need in terms of level premiums, death benefits and cash value when it matures.

This GUL policy often has one of the lowest premiums in the marketplace, making it an excellent choice when you are looking for permanent death benefit protection vs cash value accumulation.

a feature of certain debt instruments that allow for the estate of a deceased investor to «put back» or redeem that instrument without penalty; bonds that carry a survivor's option usually redeem for par value when the survivor's option is exercised; in either case the benefit of the survivor's option can not be realized unless the original investor in the asset has died; because investor mortality risk must be taken into account when underwriting assets that carry a survivor's option, these assets are more complex and expensive to issue; also known as a «death put»

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).

A typical term policy gives you coverage for a specific period of time and when that time is up, if your family has not had to use the death benefit, the money that you have paid in is a sunk cost — no cash value, and no more insurance coverage.

Since age 65 is commonly the age of retirement, this policy allows you to have a paid up policy (that continues to build cash value and grow your death benefit) at age 65, when most people need to cut back on their expenses.

Particularly when we are focused on a death benefit, rather than cash value accumulation, a relatively small sum of money can purchase a large death benefit.

When determining who will have access to the cash value, it is important to identify the various goal of the split dollar plan and these are summarized in the questions of death benefit and control over the policy.

When you pass away, the death benefit your loved ones receive will be the face value of the policy.

So if you have a death benefit of $ 1 million, and your cash value is currently at $ 400,000 when the insured dies, the beneficiary will receive the death benefit and the cash value — $ 1,400,000.

Or viewed differently, investors make larger offers when there is a lower discount rate to estimate the present value of a future anticipated death benefit.

The investor realizes the profit when the insurance company pays the death benefit but must continue to pay premiums each year and must realize a gain for the time value of money.

When you die, the life insurance company gets the cash value of the policy while the death benefit is paid out to your beneficiaries.

When you are trying to figure out what you will receive in terms of face value for the policy, the face value is the amount of the death benefit provided.

When the policy holder chooses the level death benefit, the value of the pure insurance component decreases over time to keep the death benefit the same while the policy's cash value increases.

When you borrow any portion of the cash value from your Whole Life policy, the outstanding loan will reduce the face value (or death benefit) until the withdrawn funds are repaid with interest.

However, universal life is thought of as being more flexible than whole life because the policy holder has more control over when the premium due date is, as well as how much of the premium goes towards the death benefit, and how much goes towards the policy's cash value (within certain guidelines).

When the insured passes on, their beneficiaries will receive only the death benefit and not the cash value of the policy.

The Variable life insurance can offer you the possibility of a greater death benefit and cash value when compared to other permanent life insurance policies.

Whole life is considered the most rigid type of permanent life insurance, as the insured has few or no options when it comes to altering death benefits, premiums or the cash value accumulation feature.

However, the tax laws dictate that the death benefit from your life insurance policy gets added into the rest of your estate when calculating your estate's value and the amount of estate tax you owe.

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.

Endow A policy will endow when the whole life or «endowment» policy's cash value is equal to the death benefit of the policy.

While I do not believe life insurance is an appropriate alternative for investing, I can think of specific circumstances where permanent, cash value, insurance is the only appropriate choice when a guaranteed death benefit is required.

When a policyholder dies, the death benefit received by the nominee in case of type 2 ULIP is equal to sum assured plus fund value.

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.

When I calculate the expected net present value of death benefits minus premiums for new cash value policies using an after - tax discount rate, the result is usually positive.

Make sure the policy you choose has the coverage you need in terms of level premiums, death benefits and cash value when it matures.

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.

Whatever the name, permanent insurance is a mix of term life insurance and an investment account that pays a benefit when you die, or pays the built - up cash value if you liquidate it before your death.

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, your health, and other underwriting factors).

Typically a universal life policy will have two options for the death benefit payout which are option A and option B. Option A is your normal fixed death benefit payout without any cash value, usually this is the amount of coverage you got when you first bought the policy.

ACE stands for assured coverage endorsement and this is essentially a no lapse guarantee endorsement that states even though this is a cash value policy, even if there is zero cash value or not enough cash value to sustain the cost of insurance, the policy's premiums and death benefit will still stay level as long as you pay your premiums on time when they are due.

Permanent life insurance — also known as whole, universal, and variable life policies — is a mix of term life insurance and an investment account that pays a benefit when you die, or pays the built - up cash value if you liquidate it before your death.

When there is «gap,» or difference, between the cash value of the policy and the death benefit payable under the policy, this difference is the «net amount at risk» since it represents an amount of money that the insurer needs to pay with money that the policy has not yet earned.

When you pass away, the death benefit your loved ones receive will be the face value of the policy.

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.

In fact, the controller alleged that John Hancock has a practice of avoiding paying death benefits, instead collecting premiums from the accrued cash value of a policy, even when the premium payments stop coming from the insured.

A policy will endow when the whole life or «endowment» policy's cash value is equal to the death benefit of the policy.

On top of that, the cash value is guaranteed to equal the death benefit when you reach 100.

So, for example, if the death benefit of a life insurance policy that is owned by the insured has a death benefit of $ 500,000, then this amount will be included in the person's overall estate value when he or she dies.

Since YOUR cash in the policy becomes part of the death benefit, in my example above, a $ 10,000 death benefit on a 40 year old policy with $ 7,000 cash value means the insurance company is at «risk» to pay out $ 3,000 when the person dies.

Change of the death benefit type, for owners of universal life insurance policies, can also be made that will either include or exclude in the proceeds any accumulated cash value when the insured person dies.

Universal life insurance offers policy holders a great deal of flexibility in that they can choose — within certain parameters — when they make their premium payment, as well as how much of that payment is allocated to the death benefit and how much of it is allocated to the cash value component.

When you pay your premium, a portion of the premium is applied to death benefits and a portion to the cash value accumulation.

When you pass away, the Combination Enhanced Death Benefit gives your beneficiaries the best of the following values:

When choosing your death benefit coverage amount, you may select a fixed death benefit that doesn't change and is equal to the amount of life insurance that you choose, or you may opt for a death benefit that grows based on the value in your savings account.