Sentences with phrase «value to pay»

Some policies can even use the cash value to pay your premiums if you are not able to make them, effectively paying for itself after a few years.

Policies with a cash value, such as whole life insurance, often have a provision that allows the carrier to borrow from the policy value to pay overdue premiums.

The AUTOMATIC PREMIUM LOAN option automatically borrows from the available Cash Value to pay for your premium due.

Alternatively, in life insurance contracts, an accelerated option can refer to the option that allows the policy holder to apply the accumulated cash value to pay off the policy.

(Your policy may provide for automatic premium loans, which means that if you don't pay your premiums on time, the insurance company will automatically create a loan against your cash value to pay the premium and keep your policy in effect.)

This is how much the insurance company must come up with to add to your cash value to pay your beneficiary the full $ 1,000,000..

Usually there is a provision that is called the Automatic Premium Loan that takes money out of the cash value to pay premiums if you stop.

In case of a financial hitch, you can reduce or stop your premiums and use your cash value to pay premiums.

For example, you can use the cash value to pay your premium.

If policy holders still do not pay within the grace period, a policy may use its own account value to pay for the unpaid premiums.

The only exception to this rule is that there must enough cash value to pay the costs of coverage.

A provision in a life insurance plan that authorizes the insurance company to use the loan value to pay any premiums still due at the end of a grace period.

A Long - Term Care Annuity is a single premium annuity that allows you to withdraw from your annuity's accumulated value to pay your LTC expenses.

If you have some version of a permanent life insurance policy with a cash value amount, you can actually borrow from the cash value to pay the premiums on the policy.

Use the cash value to pay premiums.

You should check with your agent before deciding not to make premium payments for extended periods because you might not have enough cash value to pay the monthly charges to prevent a policy lapse.

On the other hand, it may also refer to the option to use a permanent life insurance policy's accumulated cash value to pay the remaining premiums on it.

The insured can borrow cash value to pay for premiums, or withdraw it when the policy is surrendered.

While interest earned by the policy can offset this risk to some degree by significantly extending the length of time it takes for a policy to run out of cash value to pay premiums, if this does occur the consequences can be severe.

Policies such as variable universal life insurance combine components of the above, blending the investment flexibility of variable life with the ability to use the cash value to pay monthly premiums offered in universal life.

As the cash value grows, universal life insurance allows you to use the cash value to pay for your monthly premiums.

Universal life insurance is essentially a version of whole life insurance but with the added flexibility of using the policy's cash value to pay for premiums.

If you have a permanent life insurance policy that has accumulated cash value, the insurance company drains your cash value to pay your premiums until it runs out after which the policy lapses.

You can use this cash value to pay the monthly premiums for the plan or to secure a loan.

This can be especially problematic, since there won't actually be any remaining cash value to pay the tax bill that comes from this «phantom income».

Rather than burdening his children for money, he considers surrendering his policy to extract its cash value to pay for the medical bills.

At some point in time you may be able to use your dividends or cash value to pay your premium, but you will always have to pay it in some way.

Owners can also take the dividend payments as income paid directly to them or buy more insurance with them, and they can also use the cash value to pay for the life insurance after a certain point in time (in most cases).

Variable universal life insurance policies have the cash value structure of variable life insurance, but you can use the cash value to pay premiums.

Would I be better off using the cash value to pay the remaining premiums or pay them out of pocket.

PPA permits tax - free distribution of life insurance or annuity cash value to pay for long - term care (both beginning in 2010).

Many people choose to pay the maximum premium possible for the first several years of coverage in order to build a large cash value, then use the cash value to pay premiums later on.

For example, a policy owner could turn in the policy for its available cash value, or borrow against the cash value and still keep the policy in force, or temporarily use the cash value to pay the policy's monthly premiums.

However I wouldn't count on using cash value to pay premiums in the future, or use these policies as investments.

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).

If you use part of the cash value to pay premiums, you could end up with no cash value.

Use your accumulated cash value to pay the future premiums (also referred as automatic premium loan).

Now my kids are grown and I cashed out most of the cash value to pay for their college.

This would prevent loss of the insurance protection as long as the policy has enough cash value to pay the premium.

Some companies will even allow you to use the accumulated cash value to pay future premiums, effectively using the life insurance policy itself to pay its own premiums.

You can also use the cash value to pay your premiums, if you so choose.

You can borrow against (or make a withdrawal from) that cash value to pay for tuition, books and other college expenses while not reducing the amount of federal financial aid available to your child.

You can also use the policy's cash value to pay your premiums so you can realize its value too.

Eventually, you can use that value to pay the monthly premiums or to secure a loan.

Each month, your insurance company will debit your cash value to pay the policy's monthly charges, which include a charge for the cost of insurance.

The first set shows what could happen to the cash value and death benefit if he taps his cash value to pay premiums.

To remain active, the policy must have sufficient available cash value to pay for the cost of insurance.

As your cash value grows, you can even use the cash value to pay your premiums.

You just use the cash value to pay premiums.

While you can withdraw part of the cash value or take out a loan against it, enough money must remain in the cash value to pay for monthly insurance expenses.