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What else can I help you with?
Can burrow from your life insurance?
If your life insurance policy has cash value, you can borrow from the cash value inside. If you have a term policy with an accelerated death benefit rider then you may be able to borrow against the death benefit if you have a terminal illness.
How does one find out the cash value of Life Insurance?
The website Insure shows one how to calculate the cash value of Life Insurance. Their model shows what could happen to the cash value and death benefit if one taps his/her cash value to pay premiums.
What is the difference between face value and death benefit?
Your death benefit will always be the amount paid to your beneficiaries should you die. Your Face value is almost always the same thing as your death benefit and certainly it is with term insurance. With Cash Value policies however, if you ever make a withdrawl or take a loan on your cash value, this will effect the face value should you die and not pay it back. So suppose you take out a $10K loan on a $100 K policy. Your death benefit is still $100K but your face value should you die is only going to be $90K
What are the 3 elements to a universal life insurance policy?
company expense cash value death benefit
What is policy value?
It usually talks about the cash value or surrender value of a permanent policy. It could also reflect the death benefit of any policy.
Where does cash value go after the death of the insured?
It depends on the terms of the policy. Generally, cash value is a term related to the surrender value. If you die under a normal life insurance contract, your death benefit is paid and that's all. Some companies offer a rider that allows payment for the cash value plus the death benefit, but that costs more because you are purchasing insurance for the total of both calculated over a long time.
When the cash value of a universal life insurance policy grows close to the amount of death benefit an additional corridor of insurance is added to the benefit under what?
Endowment
Is it best to borrow or surrender the cash value in a universal policy?
That depends on whether or not you wish to continue having the life insurance in force at the insured's death. If you wish to have the life insurance in force at death, then it is best to borrow some of the cash value. If you surrender the policy, then you receive all the remaining cash value (less any surrender charges), but the death benefit is no longer there. Also the cash value received MAY be taxable.
Which option for universal life allows the beneficiary to collect both the death benefit and cash value upon the death of insured?
The option that allows the beneficiary to collect both the death benefit and the cash value upon the death of the insured is known as the "Option A" or "Level Death Benefit" in universal life insurance. However, it's important to clarify that typically, beneficiaries receive only the death benefit, while the cash value accumulates for the policyholder during their lifetime. In some cases, certain riders or policy provisions may allow for additional benefits, but standard policies do not provide both amounts directly to beneficiaries. Always consult the specific policy details for accurate information.
Whole life insurance what happens to the cash value when you die?
Depends on how it is set up. My policy has a death benefit that actually increases by more than my cash value over the years so if i die my beneficiaries get the original face amount PLUS the cash value and then some!
What life insurance option allows someone to apply dividends to the policy to increase the death benefit?
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.
Do you lose your death benefit on an endowment life insurance policy if you live until the endowment and cash it in?
If you cash in the policy then yes it will not pay the death benefit because you have cancelled the policy.
