Sentences with phrase «which policy account values»

A date on which policy account values - typically in variable policies - are contractually determined.

Not exact matches

The majority of permanent life insurance policies also have a cash value component, which is similar to an investment account.

[8] Blair put forward a case for defining socialism in terms of a set of values which were constant, while the policies needed to achieve them would have to account for changing society.

But it also decreases the value of the benefits received by risk - averse employees, which needs to be taken into account when evaluating the effect of the policy change on benefits.

Those payments are invested in the company's general account, which in turn, guarantees that you or your beneficiaries will receive at least the policy's guaranteed cash value or death benefit.

Variable Universal Life (VUL) is defined as a type of permanent insurance policy, in which the cash value can be invested into different accounts consisting, for example, of stocks, bonds and mutual funds.

If the mutual fund to which the cash value is invested returns a rate that exceeds 20 %, the full amount is credited to the policy holder's account (minus fees of course).

The savings which accumulate in the cash account of your cash value insurance policy can be used as follows:

In some cases, cash value insurance, specifically whole life insurance, features a minimum rate of return guarantee on funds held in a policy's cash account, which is one of many whole life insurance pros and cons.

The remainder of the premium goes towards the policy's cash value, which is similar in structure to a brokerage account.

A whole life insurance policy's cash value grows tax - deferred, which is why it's often compared to a retirement account, such as a 401 (k) or IRA.

Most cash value life insurance policies require a fixed level premium payment, of which a portion is allocated to the cost of insurance and the remaining deposited into a cash value account.

Specific cash value whole life policies typically feature paid - up additions riders, which allow you to add cash to the account if you like.

Cash value life insurance DEFINITION: a permanent life insurance policy that provides a death benefit, which also has an account that accumulates cash value.

Permanent coverage has the potential to build cash value, which means that, generally, the premiums you pay (1) grow with interest; (2) can, in some cases, be borrowed against; and (3) on indexed and variable policies, can be placed within investment accounts.

These values are how much it's estimated that you could get back from the life insurance company if you choose to surrender your whole life policy (which is why they may not be called Net Account Values on the ledger and may be called something like Net Surrender Vavalues are how much it's estimated that you could get back from the life insurance company if you choose to surrender your whole life policy (which is why they may not be called Net Account Values on the ledger and may be called something like Net Surrender VaValues on the ledger and may be called something like Net Surrender ValuesValues).

A margin account with a sweep preference of Money Market Fund will be subject to our general policy, which requires the deposit in cash or collateral on initial transactions of 50 % of the value of the marginable security as prescribed under Regulation T of the Board of Governors of the Federal Reserve System.

However, even if the account value goes down, modern Variable policies will have a contract level death benefit which will be guaranteed.

The «cash value» part of whole life policies is a savings account which is funded by a percentage of your premiums.

This type of policy also has cash value growth, so interest grows in your account which could keep the policy in force even if you stop paying some premiums.

He funded the policy with $ 17,000, and his current account value at that time was $ 15,828, minus the surrender charge (which equaled a net surrender value of $ 14,652).

These policies can also build cash value which may be withdrawn or loaned similar to a savings account.

Variable Life Insurance is a special type of a Permanent Life Insurance policy in which both the death benefit and the cash value depend on the investment performance of the underlying assets, usually one or two investment accounts known as «separate accounts» (or «sub-accounts») within the insurance company's portfolio.

Greater cash value growth can be obtained with universal life insurance policies, which are linked to one or more investment accounts.

Because the costs are paid in full and upfront, the cash value can grow quickly and your insurance coverage is entirely paid by the account value of the policy which grows if the underlying investment earnings are positive rather than with annual premiums.

The «cash value» part of whole life insurance policies is a savings account which is funded by a percentage of your premiums.

Internal rates of return for participating policies may be much worse than universal life and interest - sensitive whole life (whose cash values are invested in the money market and bonds) because their cash values are invested in the life insurance company and its general account, which may be in real estate and the stock market.

You want to be able to extract money from your life insurance: Permanent life policies include a savings account known as cash value, which grows gradually on a tax - deferred basis.

Part of each premium payment is applied to the policy's cash value account, which grows on a tax - deferred basis (based on current federal tax laws).

Account Value: This is the accumulated gross value of all the investments contributed to the policy which include the income after deducting all the current monthly expeValue: This is the accumulated gross value of all the investments contributed to the policy which include the income after deducting all the current monthly expevalue of all the investments contributed to the policy which include the income after deducting all the current monthly expenses.

The majority of permanent life insurance policies also have a cash value component, which is similar to an investment account.

You can schedule your high value items, which individually accounts for them on your policy.

Most cash - value life insurance policies require a fixed level premium payment, a portion of which is applied to insurance costs with the balance deposited into a cash - value account.

When they originally purchased the whole life policies, their agent had told them that at some point, their cash value account would accumulate to the point where they could stop paying their premium, and the cost of insurance would be deducted from their cash value, which would sustain the policy.

Permanent life insurance, which has a cash - value account in which a return - on - investment component becomes an often complex and expensive part of the policy (most expensive cost per $ 1,000 of coverage).

Therefore, it is important to note that any interest that is earned will be credited to the account value in the cash value component of the policy — and, by taking even a partial amount of cash withdrawal, the policy owner can be lowering the amount of the cash to which such interest can be earned.

It must mean that the dividends are being directed into a tax - deferred account which uses the money to buy what are known as «paid up additions» instead of accumulating in the cash value of the policy which could result in a tax liability.

These are both permanent cash value type of policies which differ in the types of investments your cash value account will partake in.

While not to take the place of a savings account, some permanent insurance products have a cash value component that accumulates interest which can be used, via surrendering the policy or borrowing against it, for future expenses such as medical bills; however, the value grows more slowly than a typical investment plan and if you don't repay the policy loans with interest, your death benefit will be reduced.

Whole Life policies are also popular because of their guarantees which are usually available through the premiums and a guaranteed interest rate return on your cash value account.

Universal policies feature a cash value account, which serves to supplement your premium payments to keep policies in force in later years.

The remainder of the premium goes towards the policy's cash value, which is similar in structure to a brokerage account.

In addition, the growth of your policy's cash value is tax - deferred, so you generally won't pay taxes on gains so long as they remain in the account (which causes the cash value to grow faster).

The majority of permanent life insurance policies have an added «cash value» component, which acts as a savings account.

A variable universal life insurance policy works very similarly to a universal life insurance policy, except the cash value or account value is allocated to separate accounts within the life insurance policy, which are essentially mutual funds.

Variable Universal Life Insurance — A life insurance policy in which the account value is invested in variable funds.

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

The big difference between the two kinds of policies though is that variable universal life insurance has a cash value account which does not pay a fixed or guaranteed rate of return.

With variable life insurance, the cash value is also applied to the policy's fixed account, which you then transfer to variable investment options, much like mutual funds.

Only permanent policies, such as whole life or universal life, feature a cash value component, which is an accompanying savings account that accumulates on a tax - deferred basis.