Sentences with phrase «value of the insurance policy upon»

It used to be that most life insurance policies were left in force in order that the intended beneficiaries could receive the face value of the insurance policy upon the death of the insured.

Not exact matches

You see, when a participating whole life insurance plan is properly structured to maximize the cash value, the cash value can become available relatively quickly depending upon the amounts deposited and the other details of the policy.

Form 712 states the value of your life insurance policies based upon when you died.

Whole life insurance (cash value life insurance) offers a permanent accruing death benefit as well as accruing cash value within the policy over the life of the policy holder based upon mortality tables.

The pros and cons of using life insurance for cash value accumulation also vary based upon the policy type and strategy you use.

Cash value life insurance refers to a type of life insurance that, in addition to paying out a death benefit to your beneficiary or beneficiaries upon your death, accumulates cash value inside the policy while you are alive, that you can use for whatever you please.

You're entitled to go fishing (for eligibility requirements): A traditional fully underwritten whole life or universal life policy gives you coverage for life, pays out the insurance benefit upon your death and includes an investment component of accumulated cash value.

The cash value policy pays out a lump sum cash benefit upon the death of the insured for the benefit of the life insurance beneficiary.

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.

Remember that the types of cash value life insurance vary based upon the formula for accruing cash value within the policy but the most common variations are dividend paying whole life insurance or indexed universal life insurance.

If cash value life insurance is being used, the cash value can be used to repay the loan depending upon the type of policy as can a portion of the death benefit.

Cash value life insurance is more applicable to wealth building discussions because cash value is typically used during the policy owner's lifetime and is forfeited upon death in lieu of the death benefit being paid to surviving beneficiaries.

Whether the return of cash value is guaranteed, as in a whole life or guaranteed UL policy OR whether based upon the financial markets, as in IUL and Variable UL policies, the idea behind permanent insurance is to accrue a nest egg of usable cash value within a life insurance policy.

The death benefit of a life insurance policy is the amount paid out upon the death of the insured, while cash value refers to the amount of funds in a permanent life insurance policy's cash account.

Upon the policyholder's death, usually the insurer pays the face value of the death benefits for whole life insurance policies.

In return for these premiums, the insurance company will provide a death benefit to a named beneficiary upon proof of the insured's death and a policy cash value.

Remember, if you decide that selling a life insurance policy is a good idea for you, the influx of cash you will receive is only a fraction of the face value of the policy and the amount that your beneficiaries would receive upon your death.

By definition, the paid up value of a life insurance policy is the value an owner receives from the insurer upon default or surrender or early termination of the policy before its maturity or the insured's death.

The value of your claim will depend upon several factors, including the severity of the injuries; past, current, and future medical costs; loss of income; the defendant's insurance policy; your relationship with the defendant; and much, much more.

As an aside, keep in mind that a significant part of the payment would go to the mortgage holder, if any, and that a homeowner's insurance policy almost never covers the part of the value of a home that is attributable to the land that it is build upon, rather than that building that was destroyed itself.

All policy types have a stated death benefit that is paid upon the death of the insured person and permanent life insurance also has a cash value which can be used during the person's lifetime.

Upon the death of the insured, the insurance company pays a death benefit that is partly insurance and partly a return of policy's cash value.

The life insurance cash value is the amount of money you are given if you cancel (surrender) the policy before you die, while the face amount (death benefit) is the amount your beneficiaries will be paid upon your death.

With a variable universal life insurance policy, the return on the policy's cash value is based upon the performance of underlying equity investments such as mutual funds.

Upon the death of the insured person the Life Insurance beneficiary gets the death benefit equal to the face value of the policy, which is free of income tax.

This particular life insurance product builds a value based upon a set schedule — you will know the exact cash value of your policy on each policy anniversary.

Remember, if you decide that selling a life insurance policy is a good idea for you, the influx of cash you will receive is only a fraction of the face value of the policy and the amount that your beneficiaries would receive upon your death.

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.

Variable Life Insurance - A form of life insurance whose face value fluctuates depending upon the value of the dollar, securities or other equity products supporting the policy at the time paymenInsurance - A form of life insurance whose face value fluctuates depending upon the value of the dollar, securities or other equity products supporting the policy at the time paymeninsurance whose face value fluctuates depending upon the value of the dollar, securities or other equity products supporting the policy at the time payment is due.

New York Life and other insurers also offer universal life insurance policies that pay out the death benefit plus cash value or the death benefit plus return of premium upon your death.

Since most AD&D payments usually mirror the face value of the original life insurance policy, the beneficiary receives a benefit twice the amount of the life insurance policy's face value upon the accidental death of the insured.

«A term life insurance policy with a value of $ 200,000 would carry a death benefit of $ 200,000 upon the time of one's death.»

Cash - value life insurance is a type of life insurance policy that pays out upon the policyholder's death, and also accumulates value during the policyholder's lifetime.

Cash surrender value is the accumulated portion of a permanent life insurance policy's cash value that is available to the policyholder upon surrender of the policy.

In addition, loans from insurers secured by policy values are not income and earnings credited to an owner's policy values (known as «inside buildup») by the insurance company are not currently taxed (and may escape taxation altogether if such earnings are not distributed other than as part of the death benefits paid upon the death of the insured).

Permanent life insurance offers an insurance component that pays a stated amount of proceeds upon the death of the insured, while at the same time providing a cash value or investment component that accumulates cash value that the policy holder may withdraw or borrow against.

In just one section, titled: Federal Tax Lien, the article states: «Section 6321 of the Internal Revenue Code imposes a tax lien «upon all property and rights to property, whether real or personal,» belonging to a taxpayer, if he or she neglects or refuses to pay any taxes, including cash surrender values of insurance policies.»

With this type of life insurance policy, the cash value can accumulate based upon a floating rate of interest — yet it will have a minimum rate guarantee.

Variable Universal Life (VUL) is a life insurance policy type in which the face value fluctuates depending upon the value of the dollar, securities, or other equity products supporting the policy at the time payment is due.

Permanent life insurance has cash value upon surrender, offers savings you can use when accumulated, or even dividends for certain types of policies.

So, if you had an estate worth $ 5 million and you owned a life insurance policy on yourself for $ 5 million, upon your death your estate would have a value of $ 10 million.

Whole life insurance dividends are paid out at a determined rate based upon the amount of cash value in a policy.

The amount borrowed from a life insurance policy depends upon the terms of insurance contract and its cash value at the time of the loan request.

Because of that, the account value of equity indexed universal life insurance policy will go up and down based upon the market movements of the underlying index that is being tracked.

This type of insurance plans serves the purpose of indemnity of the insured during the term of the policy and offers returns at the end of the policy term, but here returns depends upon the market value of the funds in which money had been invested.

The costs are calculated based upon the amount at risk to the insurance company, with the amount at risk being the death benefit of the policy minus the cash value of the policy.

In return for these premiums, the insurance company will provide a death benefit to a named beneficiary upon proof of the insured's death and a policy cash value.

on life insurance policies release a sizable chunk of the policy's death benefit to the policyholder while he / she is still alive, allowing the usage of the death benefit funds on valid diagnosis of one of the critical or terminal illnesses stated in the policy.These riders» critical / terminal illness payout is tax - exempt, and beneficiaries also receive the left over face value, untaxed, upon the policyholder's passing.

Whether the return of cash value is guaranteed, as in a whole life or guaranteed UL policy OR whether based upon the financial markets, as in IUL and Variable UL policies, the idea behind permanent insurance is to accrue a nest egg of usable cash value within a life insurance policy.

You see, when a participating whole life insurance plan is properly structured to maximize the cash value, the cash value can become available relatively quickly depending upon the amounts deposited and the other details of the policy.