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Answered 2008-12-22 19:05:30

This type of policy is also referred to as a limited pay life insurance policy. Life insurance premiums are paid for 20 years then the policy is paid in full and no futher payments are required. The policy remains active until it is paid out or cashed in.

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A limited-pay whole life policy, just like straight life, endows for the face amount if the insured lives to age 100. The premium is, however, paid off in 20 years,

A fully paid policy is a limited pay whole life policy under which all premium payments have been made. For example, a 20 pay policy is completely paid for after 20 payments. No future premiums have to be made, and the policy remains in full force for the life of the insured.

Straight whole life is a whole life policy that provides a constant level of protection and level premiums throughout the life of the policy which is until death of the policyholder or age 100 as long as the premiums are paid. Limited pay whole life is a whole life policy in which premiums are paid for a set number of years at which the policy is considered paid in full. i.e. a 20-pay policy in which premiums are paid for 20 years and coverage is good for life. The shorter the period for premiums the higher they will tend to be. Single premium whole life is a whole life policy in which one substantial single premium is paid at the beginning and from that point on the policy is considered paid in full. This premium gives it an immediate cash value. Straight whole life Limited pay whole life Single premium whole life

Do I have to pay tax on my exhusband's life insurance if I am also the benificary of the policy?

Sounds like you would only pay premiums for a specific period of time and then have a paid up insurance policy. For instance, buying a 20-pay life on your infant and it is all paid up at age 20 and will never go away. A great gifting idea to your kids!

Can you sell a 20 year term life insurance policy which has no cash value

A single pay whole life insurance policy is a permanent life insurance policy that requires a one time payment/premium. The policy is guaranteed to stay in force until age 121 (in USA) and no additional premiums need to be paid.

If a person dies in a manner not covered by the policy, there would be no payout.

Limited pay life insurance is really just a form of whole life. The difference is that the policy holder pays premiums only for a preset period of time, after which they enjoy the benefits of the policy for life. Policy holders can also borrow against this type of policy if needed, and it pays dividends.

Obviously the claim will be entertained in case of sudden death of the policy holder in whole life policy.

It is reasonable to pay around 20 dollars a month for a 200000 dollar policy as a healthy person in their 30's.

If it is a standard Life Insurance product, then that will have no bearing on whether or not it will pay. However, I would suggest transfering to joint ownership of the policy, so that the policy is owned by you and someone that you trust.

If you are receiving dividends from a life insurance policy, do you have to pay taxes and what %

Proceeds from a life insurance policy to a beneficiary are usually paid free from federal income tax.

A will does not normally change a life insurance policy. The policy is a contract between the insured to pay a beneficiary. If the policy leaves the money to the estate, the will then controls the dispensation.

Limited payment life insurance, sometimes referred to simply as limited pay life insurance, is really a way of having the best of all worlds with a whole life policy. You pay a premium for a predetermined number of years and you have your policy for the rest of your life. Here is how the limited payment life insurance policies work.

Usually the policy is terminated if it needs to be inherited. Meaning that if you die, that policy will usually just pay the value of the policy and be done with.

The beneficiary of a life insurance policy is not responsible for paying for the deceased's funeral cost using the money from the proceeds of the life insurance policy. The estate of the deceased is responsible for paying for the funeral cost from the proceeds of the estate.

If you mean will the life insurance pay if the person dies of AIDS, I would guess yes, but check the policy to be sure.

The answer to the question of whether or not beneficiaries have to pay taxes on the money received from life insurance policies is: no they will not have to.

What's the face value of the policy?

insurance, life insurance

A surrender endowment is a type of life insurance policy that will pay a lump sum on death or after it expires. Sometimes the policy will pay out early if there is a critical illness.

You can you need to pay the premiums yourself. However you cannot have income from a life insurance policy that has been paid to you as that is declarable.

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