Sentences with phrase «value of your life insurance policy rather»

Some whole life policies may allow you to borrow against the cash value of your life insurance policy rather than taking a withdrawal.

Not exact matches

Because the death benefit amount of your cash value life insurance policy may change over time as its cash value grows, make sure to specify a percentage of the proceeds to go to your beneficiaries rather than selecting a dollar amount.

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.

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).

Rather than surrender your life insurance policy for the cash surrender value, there is a market available that allows you to sell your life insurance policy for cash, for potentially greater amounts of money than had you chosen to surrender the policy to the life insurance company.

And just like the example above, when looking at the price tag of a 20 or 30 year term life insurance policy, in some situations, the grandparent will simply elect to take the slightly more expensive cash value whole life insurance option rather than saving a few bucks and choosing a term life insurance policy for their grand kids.

While permanent life insurance policies have a cash - value component that accumulates savings and can be invested, you'll have the greatest control over your money and the potential to earn the highest returns if you invest it yourself, through the brokerage of your choosing, rather than through a life insurance policy.

Personally, I'd rather keep the life insurance, use the cash values to supplement my investments and / or use the cash value to pay my income in the years the stock market goes down (like 2001, 2008, etc) so that I don't end up worse off than when I began because at the end of the day that account can't lose its value, I can't be sued for the value of it, I don't need to report it on my son's FAFSA form for college, AND if I pull money out of it for my son's school, the dividend still pays the same amount as if I hadn't drawn the money out in the first place (fun fact: that last point isn't something that a northwestern policy does, but new york life and massmutual's contracts do).

A cash value life insurance policy is almost never appropriate for short term planning, but rather compounding the benefits of the policy with time to create a tool of financial leverage.

Instead, fixed universal life policies generally earn an interest rate in the cash value, while variable universal life policy returns depend on the performance of the funds offered within each policy's subaccounts, which are analogous to mutual funds, except that the insurance company owns the shares rather than the policy owner.

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).

No load life insurance allows your cash value to accumulate faster than a traditional whole life policy would, since more of your premiums are going towards that cash value rather than paying into commission.

Because the death benefit amount of your cash value life insurance policy may change over time as its cash value grows, make sure to specify a percentage of the proceeds to go to your beneficiaries rather than selecting a dollar amount.

The benefits of permanent life insurance are that you will not have to worry about your coverage ever running out, you will be accumulating a rather impressive «cash value» that you can access even before you die, and the policy itself is treated as a financial asset that can potentially be sold later in life.

If you're seeking a simplified issue policy, — for which only a medical questionnaire is required, rather than a full exam — a wider range of death benefits are typically offered for simplified issue guaranteed universal policies than for simplified issue whole life insurance (which typically have a maximum face value of around $ 50,000).

In term life insurance, you typically purchase a waiver of premium rider rather than the waiver being automatic as it is in a policy with the waiver built in and a cash value to deduct the premiums from.

What differentiates an Indexed UL policy from other types of permanent life insurance used for cash accumulation is that the growth of the policy's cash value is based on the performance of an equity index (usually the S&P 500), excluding dividends, collared by a cap and a floor — rather than based on a flat crediting rate that is established by the insurance carrier and adjusted from time to time (a product referred to as «current assumption universal life»), based on a flat dividend rate that is established by the insurance carrier and adjusted from time to time (a product referred to as «whole life»), or based on the actual investment returns of specific equity investments (a product referred to as «variable universal life»).