basic premium
The cash value is the amount of money your insurance policy is worth to the owner of the policy if the insurance is cancelled and the policy terminated. The insurance company will mail a check to the to the policy owner upon policy termination or cancellation by request of the owner. I would strongly encourage you to consult a professional in your area before cancelling an existing policy. There may be other options and alternatives to access the value of the policy without cancelling the insurance policy.
A life insurance premium is the amount of money that is paid, on a periodic basis, to an insurance compasny in return for insurance coverage on a person's life. Provided that premiums are paid as and when due, the insurer is obligated to pay to the beneficiary(ies) the face amount of the policy. The amount of premium payable is determined primarily by the amount of life insurance purchased and the risk factors (age, medical history, etc) of the person to be insured under the policy.
Most Life insurane companines allow you to borrow money from your Universal Life Policy. There will be an interest rate charged, the interest rate will be reflected in your policy under "Loans". You will only be able to borrow against the cash accumulation account. The amount in the account is usually the difference between the cost of insurance, plus expenses and the amount that you have been putting into the policy, plus any earned interest. The more money you pay into the policy above the cost of insurance and expenses, the more you should have in your cash accumulation account. Remember, you determine the amount of the premiums paid into the policy, the amount has to at least meet the minimum premium set by the life ins. company, and cannot exceed the top limit placed by IRS to maintain a life policy's tax benefits.
Insurance money is paid when you make a valid claim against the policy and can prove why the situation falls under the terms of the policy---whether it is Life Insurance, Car Insurance, Accident Insurance, Travel Insurance, etc. Call the Insurance Company for exact details.
When an insured purchases an insurance policy they pay the insurance company money for the insurance coverage. This money the insurance company collects is called insurance "premiums". The insurance company, using the law of large numbers, collects more money in premiums than it pays out in claims. The insurance also makes alot of its money by taking the money earned from premiums and then investing it. As we all know that Life insurance policy cash values are accessed through withdrawals and policy loans. However, withdrawals are taxable to the extent they exceed basis in the policy. Loans outstanding at policy lapse or surrender before the insured's death will cause immediate taxation to the extent of gain in the policy and hence benefits the company.
Yes, you can out live your Insurance Policy. When the amount of the premium paid equals the face amount of the policy (the death benefit), the policy matures and you get all your money back.
The amount of money paid out will be listed in the policy itself. Read the contract to find this out.
The life insurance policy has a maturing date that determines the time it takes for a policy to accumulate the amount of money essential for the policy. An unmatured life insurance policy is one that hasn't yet reached the end of its policy.
Gerber life insurance policies typically require you to be the policyholder to make claims. If you are the insured of the policy, you may be eligible to collect benefits, regardless of your age. It's best to review the specific terms of your policy or contact Gerber Life Insurance directly for assistance.
to deduct money from the payable amount of the policy
If you surrender a whole life insurance policy, you may have to claim the money on your income tax. The IRS states the amount you receive that is above the amount paid for premiums is considered taxable.
In that case, the money will be kept deposited with the insurance company as unclaimed amount. In absence of the beneficiary, the insurance company can pay the money to the legal heir of the policy holder, but that has to be sufficiently proved in the Court of Law.
deductible
The cash value is the amount of money your insurance policy is worth to the owner of the policy if the insurance is cancelled and the policy terminated. The insurance company will mail a check to the to the policy owner upon policy termination or cancellation by request of the owner. I would strongly encourage you to consult a professional in your area before cancelling an existing policy. There may be other options and alternatives to access the value of the policy without cancelling the insurance policy.
It would be possible to write an insurance policy that way if you wanted to, however, normally a life insurance policy pays a fixed amount of money (known as the death benefit) to a chosen beneficiary. If the beneficiary then wished to use that money to pay for a home, that could be done.
An insurance policy is a contract between an insurance company and the person purchasing the policy (or the insured). The policy costs a specified amount and if all premiums are paid in a timely manner, once the insured has died, their beneficiary (who whomever they name) will be paid a sum of money.
If the policy was still in force and the insured has died, then yes, the insurance company would owe the death benefit. If the policy was cancelled or surrendered, the company would not owe anything.