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If you are left to make a choice between term life and insurance and whole life insurance, it comes down to how much you are willing and able to pay for your premiums and how much coverage you are looking for. If you can afford to pay a higher premium for your entire life, a whole life policy is the one for you as it also brings with it a cash value along with the death benefits. If you have a young growing family and want to protect it from hardship after your death, a term life policy comes highly recommended. The death benefits can be used to pay for funeral expenses, mortgage bills, education loans and help maintain your family's standard of living even in your absence. But whatever you choose at the end of the day depending on your individual requirements, ensure that buying a policy - any type - is non-negotiable.
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Does your policy have cash value?
A life insurance policy may have cash value if it is a "whole life insurance policy". This is a kind of life insurance, distinguished from "term" life insurance, that accumulates cash value for the period that it is in force and premiums are paid. Each premium paid goes to pay the cost of "indemnity" (the death benefit), the administrative costs incurred by the insurer, with all or a portion of the remainder going into the cash value. The cash value element of the policy is SOMEWHAT like a savings account within the policy. It grows slowly at first but faster as the policy matures. When a sufficient amount of cash value has accumulated, policy loans from the cash value are usually allowed per the terms of the policy. The loans bear interest at a rate provided for by the policy. Term life insurance does not accumulate cash value.
Can you repay a loan with a partial surrender on a life insurance policy?
Some types of life insurance develop cash value; these are called whole life policies. Term insurance has no cash value. So it depends upon the kind of life insurance you have, and it may also depend upon how long you have been paying premiums.
Is life insurance an investment?
The is more than one kind of life insurance. Term life insurance expires at the end of its term period and is not an investment. Its sole purpose to provide protection for your dependents against the possibility that you will die and no longer provide support for them. Whole life insurance is an investment and provides the benefits of term insurance along with a savings plan, at an added cost. Eventually it is paid off , provides insurance and has a cash value. There are many options available.
What is In-kind contributions refers to?
An in-kind contribution is a non-cash input which can be given a cash value. In business, a partner or investor may offer property or something of value to the company in lieu of cash. For example, the owner of an automobile dealership wishes to invest in a local construction company. His cash-on-hand is low, so he offers ten pickup trucks to the owners of the construction company in exchange for a part ownership in the company.
How do you find out about your policy what its worth now?
There are 2 main types of life insurance policies, although both types have certain variants that add flexibility if selected. The first main type is "term life insurance". It is purchased in a stated amount, altho sometimes there is an option to buy additional amounts at various life stages or ages. If it remains in force at the time of death, the face amount originally purchased, plus any incremental amounts that have been purchased is/are paid as the death benefit. This kind of insurance remains in force as long as the required premium is paid. If the premium is not paid, the policy lapses, and unless reinstated in some way, no benefits are payable at the time of death. Therefore, in direct answer to the question, as long as premiums have been paid until now, the policy is "worth" its face value, but benefits are not payable until death. The second main type is "whole life life insurance". This differs from term in that part of the premium that is paid is applied to the death benefit (you might consider this to be similar to the premium for a term policy), another part of the premium is applied to a savings element built into the policy. This kind of life insurance is more costly than straight term life insurance because of the savings element. Stated otherwise, whole life insurance accumulates "cash value", which is what the savings element is called. The cash value accumulates at a minimum rate guaranteed in the policy, but it may also be more, based upon the investment returns realized by the insurance company. In the case of whole life insurance, when the policy is issued, you will receive a schedule showing the growth of the cash value at the guaranteed rate. The amount will increase each year that the policy remains in force (that premiums are paid). If you do not have that schedule, you may call the insurance company or your agent for specifics; identify yourself by name and policy number, and you should be able to get a precise number representing the current value. Keep in mind, though, that if the policy has accumulated cash value, but if you have missed one or more premium payments, the insurance company may have debited the cash value for those missed premiums in order to keep the policy in force. If that has happened, the amount that the policy is "worth" may be somewhat less than you anticipated.
Can you cancel insurance?
What kind of insurance? Life? Yes, you can simply stop paying. If it is a cash value policy you can surrender it.
Which type of insurance dose not build a cash value for the in sured?
Pure term life insurance. In this kind of policy, there is no cash value of the policy for the insured. The policy holder gets no tangible or monetary benefits as long as he/she is alive. Only the survivors of the insured can reap the benefits of this kind of policy. So, we can say that this type of policy has no cash value for the insured individual.
Does your policy have cash value?
A life insurance policy may have cash value if it is a "whole life insurance policy". This is a kind of life insurance, distinguished from "term" life insurance, that accumulates cash value for the period that it is in force and premiums are paid. Each premium paid goes to pay the cost of "indemnity" (the death benefit), the administrative costs incurred by the insurer, with all or a portion of the remainder going into the cash value. The cash value element of the policy is SOMEWHAT like a savings account within the policy. It grows slowly at first but faster as the policy matures. When a sufficient amount of cash value has accumulated, policy loans from the cash value are usually allowed per the terms of the policy. The loans bear interest at a rate provided for by the policy. Term life insurance does not accumulate cash value.
Can you repay a loan with a partial surrender on a life insurance policy?
Some types of life insurance develop cash value; these are called whole life policies. Term insurance has no cash value. So it depends upon the kind of life insurance you have, and it may also depend upon how long you have been paying premiums.
What kind of value provides replacement value for personal possessions?
Renter's insurance Renter's insurance
How much would you get back from life insurance after 33 years?
Assuming that you are speaking of whole life insurance. the answer depends upon the rate of accumulation of cash value. Cash value is the "savings" element that is built into a whole life policy. That is, a portion of each premium is applied to the cost of the insurance protection, and a portion is credited to cash value. Depending upon the kind of whole life policy that is involved, the "savings" portion of the premium can be invested in a mutual fund or some other sort of investment vehicle. Therefore, the growth of that amount can depend upon market forces such as the stock market. If the market flourishes, cash value can increase quickly; if it does not, cash value will suffer. Other kinds of whole life policies exist that promise only a minimum cash value accumulation that are specified in the policy. In those, cash value usually accumulates more slowly. The answer also depends upon whether premiums were paid all during the life of the policy. Again, using a whole life policy as an example, it may provide that if premium payments stop, the insurance company may keep the policy "alive" by taking future premium payments from the cash value. This would reduce the cash value proportionately, depending upon for how log it is done. If you are referring to term insurance, no cash value accumulates at all. It provides a death benefit only, which is payable when the insured dies. The premiums paid are lower than those for whole life insurance because there is no savings element built into the policy.
Non forfeiture options?
Hi, I have some few knowledge regarding this nonforfeiture. I had only known that Standard life insurance and long-term care insurance may have nonforfeiture clauses. The clause may involve returning some portion of the total premiums paid, the cash surrender value of the policy, or a reduced benefit based upon premiums paid before the policy lapsed. If you have any attorney issues regarding this then Law Office of Sebastian Ohanian is one of the best options for you. Thank you
Why would a life insurance policy started 25 years ago decrease by half or more?
Without seeing the policy, it is hard to say. However, there are at least a couple of possibilities: 1. It is a "decreasing term" policy. This is a variety of life insurance that has a high face value at the beginning of the policy, but that decreases over the life of the policy. This kind of policy is often sold to a fairly young head of household, whose life insurance needs are high. The need arises, for example, because in the event of premature death, funds are required to raise children. As the policy ages, and therefore the theoretical need for life insurance protection decreases, the amount of life benefits decrease. 2. It is a whole life policy. This is otherwise called "permanent insurance". It builds cash value, which is a kind of savings account built into the policy. A part of the monthly premium is applied to the cost of insurance, and a part is applied to the cash value. Although cash value accumulates slowly at first, over the life of the policy, it can build substantially. Additionally, some policies allow the policyholder to divert what would otherwise be held by the insurer and applied to cash value, to mutual funds or other investments. While there is a risk to doing this, such as the stock market declining, there is also the potential of the market rising and the cash value increasing more quickly. Over a period of time that cash value has accumulated, the policyholder may have decided, or neglected, to pay premiums. For at least some of the time that premiums were not paid by the policyholder, the insurance company may have deducted premiums from the cash value, thereby keeping the policy in force. All of that said, it is conceivable, but unlikely, that a policy could have survived on its cash value for 25 years
What kind of insurance should you ask your tenant to carry?
Renters insurance .
What kind of insurance determines the value of what was destroyed or damaged by fire or other events causing loss?
This would be either your homeowners insurance or your renters insurance.
Should homeowner insurance be the same amount as the assessed value of a condo apartment?
No. The assessed value is for tax purposes and it is based on what should be the real estate value based on sales in your county. Depending on what kind of policy you have as your homeowner's policy you probably need the replacement cost value and not the real estate price.
What is best description of term insurance?
Term life is a kind of life insurance that remains in force for the amount of time (the "term") stated in the policy. At the end of the term, coverage of the policy ends. In its usual form, term insurance does not accumulate cash value, like whole life insurance. Cash value can be likened to a "savings account" within the policy into which a small part of every premium dollar is deposited. Unlike this, the premium for a term policy is tied more directly to the actual cost of providing the death protection. Therefore, term insurance is generally less costly than whole life insurance. purchased for a certain time period with a specific premium cost a+ ^
