0
When the cash value accumulation of the life insurance policy equals the face amount what would you say the policy is?
Wiki User
∙ 18y ago
Matured. That and a good plan. You can stop paying now. Take the proceeds in cash and buy a Single Premium Whole Life (if you are insurable. What does that do for you??? Say you have a $10,000 whole life plan worth $10,000. You take that and dump it all into a SPWL which is now worth maybe $15,000 or $20,000 death benefit depending on your age. Also, you owe nothing more in premiums and you can get at the cash value if you need to! The death benefit will continue to increase as will the cash value over time. It's a no-brainer if done properly. 4lifeguild.com
Wiki User
∙ 18y ago
Add your answer:
Earn +20 pts
What is the difference between a graded life insurance plan and a level life insurance plan?
A graded benefit life insurance plan is offered when the customer has an extensive health issues history. The difference between the graded life insurance and the level life insurance policy is that graded plan will pay less than the face amount of the policy in the first two policy years if the insured dies before the third policy year. Usually in the first two policy years the benefit paid equals the amount of insurance premiums paid plus a %.
What is insurance primium calculator?
Insurance premium calculator allows you to calculate how much insurance premiums you'll be paying when you take up a policy. It provide the benefit for the customer to calculate insurance premiums online.
What does maturation means?
When a life insurance policy matures, this means that it has reached the insured amount. For example, if someone were to take out a $25,000 life insurance policy and continue to pay the premiums, once the policy reached the $25,000 with the payments and dividends, it will have matured.
Which of these describes a situation in which people have to pay a deductiable?
when their insurance policy only covers part of a medical expense
How can one calculate prices for term life insurance?
Many factors go into calculating prices for term life insurance. Factors to take into consideration are: Your dependents living expenses if your income is no longer available, the premium rate of the insurance company you chose and lowest cost policy for which you qualify.
Can you out live a life insurance policy?
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.
Does the face amount of endowment insurance double if you are alive at the end of the period?
No. At the end of an endowment policy, the cash value equals the face amount.
Can you borrow money from a universal life insurance 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.
Is there cash value in decreasing term insurance?
Decreasing term life insurance does not usually have any cash value. Decreasing term life insurance is life insurance coverage in which the face amount of a term life insurance policy declines by a certain specified amount over a specific number of years. For example, the initial face amount of coverage of a $200,000 decreasing term life insurance policy decreases by $20,000 each year, until after 10 years the face value of the policy equals zero. The premium does not decrease over the term of the policy.
What limits the amount that a policy owner can borrow from the insurance poicy?
the limit of a loan against the policy is the amount of net cash value you have on the life insurance policy. Up to 75% of the paid up value of the life insurance policy, irrespective of the sum insured amount.
Can the executor get the amount of the life insurance policy?
NO.. unless the policy does not have nomination. Only nominee will get the proceeds of life insurance policy.
What is the difference between a graded life insurance plan and a level life insurance plan?
A graded benefit life insurance plan is offered when the customer has an extensive health issues history. The difference between the graded life insurance and the level life insurance policy is that graded plan will pay less than the face amount of the policy in the first two policy years if the insured dies before the third policy year. Usually in the first two policy years the benefit paid equals the amount of insurance premiums paid plus a %.
What does it mean when death benefit is larger than the face value?
It means that the payor paid enough premium into the policy that the accumulation of cash in the policy grew to an amount that exceeds the number shown as the life insurance amount. For example, there is a $50,000 life insurance policy. The payor paid $30,000 into the policy at policy inception and paid nothing else. The $30,000 is credited interest or is invested in the stock market so that the $30,000 grows over time to an amount that exceeds $50,000. If the $30,000 grows to $67,000, the death benefit is $67,000; not $50,000. The "face value" is $50,000.
How do we increase the amount on our policy for life insurance with your company?
You can opt for another policy as increase in amount of a life insurance policy is not allowed, though there is option for reduction in sum insured in few policies.
What is an unmatured life insurance policy?
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.
What is a master insurance policy?
master insurance policy In Marine Policy, one Master or Open policy is issued to the Exporter for a fixed amount. Against each shipment, Insurance Certificate is issued against the Master or Open Marine Policy. When the total amount of the Master policy is exhausted,either the value is enhanced or a separate Master Policy is issued to the exporter.
Can you collect from a Gerber life insurance policy after you turn 21?
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.
