First, never purchase whole life insurance unless you have exhausted all other investments. Meaning, you are contributing the maximum amount of money into your 401K, IRA's, Bonds, ect. Whole life should be the last investment you should make. Buy term insurance and invest the difference. Cash in your current whole life policy and roll it over into an IRA. You won't be taxed if you roll it into a traditional IRA. Read more about finances in David Bach's book "Smart Couples Finish Rich."
A major disadvantage of a modified whole life insurance policy is that you can never change the face value on your policy. Additional coverage would require the purchase of an another policy. Also the growth potential on your policy is limited.
face amount reduces and the policy is made for paid-up value
Depending on the type of life insurance policy, if a premium is due there is a grace period while payment can still be made to keep the policy in force. Grace period is usually 30 days. If the policy has cash value, premiums can be paid out of the cash value. Once the cash value depletes the policy will lapse if no additional payments are made.
A life settlement is a financial transaction in which the owner of a life insurance policy sells an unneeded policy to a third party for more than its cash value and less than its face value. Until recently, if a policyowner opted out of a policy by surrendering the policy or allowing it to lapse, the additional value was relinquished back to the issuing life insurance company.
Cash value of a policy is the value or worth of the policy in the local currency, if surrendered immediately.
If the policy has additional cash value, an additional loan is usally permitted, up to a certain % of the total cash value.
A major disadvantage of a modified whole life insurance policy is that you can never change the face value on your policy. Additional coverage would require the purchase of an another policy. Also the growth potential on your policy is limited.
External Replacement
face amount reduces and the policy is made for paid-up value
The option to increase the death benefit with dividends is called "paid-up additions". If you select "paid-up additions" then dividends will purchase additional death benefit which will increase the total death benefit of the policy. This will also increase the cash value of the policy.
Depending on the type of life insurance policy, if a premium is due there is a grace period while payment can still be made to keep the policy in force. Grace period is usually 30 days. If the policy has cash value, premiums can be paid out of the cash value. Once the cash value depletes the policy will lapse if no additional payments are made.
No. You still need to show proof of financial responsibility. You can purchase a liability-only type policy that protects you from claims made against you by the other driver if you are at fault in an accident.If the vehicle is worth a bit of money, you should probably obtain a stated (or agreed) value policy, that protects your investment should it be damaged in a collision or otherwise. A stated value policy is not limited by actual cash value(depreciated value) like a standard personal auto policy.Talk to an insurance producer licensed for your jurisdiction.
If you wish to enquire about a specific policy, you should ask the insurance company that issued the policy, not us.
A life settlement is a financial transaction in which the owner of a life insurance policy sells an unneeded policy to a third party for more than its cash value and less than its face value. Until recently, if a policyowner opted out of a policy by surrendering the policy or allowing it to lapse, the additional value was relinquished back to the issuing life insurance company.
Depending upon the current condition of your vehicle, a costly, comprehensive policy may not be warranted. Although general liability insurance offers little protection to vehicle owners and their vehicles, the overall expense of full coverage may not be justified when your automobile has an ultra low value. Online value estimate sites can help you get an approximation of the current worth of your car. This is an essential tool in determining whether or not you should spend additional money for your insurance. If you find that the cost of a comprehensive policy is close to the current value of the car it is definitely advantageous to opt for a more basic form of insurance that essentially fulfills the minimum requirements of the state in which you live. If additional features appear to be necessary, such as protection against hit and run drivers and car theft, you can purchase these as optional add ons which will allow for a more cost-effective final price.
Cash value of a policy is the value or worth of the policy in the local currency, if surrendered immediately.
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.