Tag: Life

6 Ways To Capture The Cash Value In Life Insurance #universal #life #insurance #cash


6 Ways To Capture The Cash Value In Life Insurance

If you’ve heard it once, you’ve heard it a million times: Life insurance is a must-have, especially when you have a family that depends on your income. If you die unexpectedly, a life insurance plan will ensure all of your family’s financial needs will be covered – from the monthly mortgage to grocery bills to your child’s college education.

While income replacement is the primary purpose of life insurance, many policyholders tap into cash-value life insurance for other reasons, such as building up a nest egg for retirement. Also known as permanent life insurance. cash-value life insurance policies provide both a death benefit and a cash-value accumulation during the policyholder’s lifetime. See How Cash Value Builds In A Life Insurance Policy to read more about how this works.

With cash-value policies, policyholders can use the cash value in a variety of ways, including as:

  • A tax-sheltered investment;
  • A means to pay policy premiums later in life; and
  • A benefit they can pass on to their heirs .

Don’t Throw Away Your Cash Value

Far too many policyholders make the costly mistake of leaving behind a wad of cash value in their permanent life policies. When the policyholder dies, his or her beneficiaries receive the death benefit, and any remaining cash value goes back to the insurance company. In other words, they’re essentially throwing away that accumulated cash value.

Fortunately, you can take steps to ensure you don’t trash your cash value. Here are six popular strategies to help you make the most of the cash value in your permanent life insurance:

Strategy 1: Boost the Death Benefit

If you have accumulated a sizable cash value over the life of your permanent life insurance policy and do not intend to use these funds yourself, you may choose to leave a larger death benefit to your beneficiaries. How can you pull that off? It’s usually very simple. Just call your life insurance company and say that you’re interested in making a trade: You’d like to increase the death benefit in exchange for the cash value on your policy. Because the life insurance company doesn’t want to lose your business, it will more than likely accept your request.

During the trade, your objective should be to completely drain the cash value and transfer the full amount over to the death benefit or the face value. For example, if you have a universal life insurance policy with a $200,000 death benefit and $100,000 in cash value, your goal is to completely empty the cash value and boost the death benefit to $300,000. That’s $100,000 more that will fall into your heirs’ hands instead of going to the life insurance company.

Strategy 2: Pay for Life Insurance Premiums

Once you have accumulated enough cash value, you can tap into it to cover premium payments. This is known as being “paid up.” The vast majority of life insurance companies are willing to honor this request – all you have to do is ask. Using this tactic, you could save $2,000 or more in premiums each year.

Strategy 3: Take Out a Loan

If you’ve built up a sizable cash value, you may also choose to take out a loan against your policy. Life insurance companies often offer these cash-value loans at interest rates lower than a traditional bank loan. Of course, you’re not obligated to pay back the loan since you’re essentially borrowing your own money. However, it’s important to note that any money you borrow, plus interest, will be deducted from the death benefit when you die.

Strategy 4: Make a Withdrawal

If you’re low on funds or simply want to make a large purchase, you have the option to withdraw some or all of your cash value. Depending on your policy and the size of your cash value, such a withdrawal could chip away at your death benefit or even wipe it out altogether. While some policies are reduced on a dollar-for-dollar basis with each withdrawal, others (such as some traditional whole life policies) actually reduce the death benefit by an amount greater than what you withdraw. Be sure to discuss this tactic with your insurance agent before you make any sudden moves.

In recent years, cash-value life insurance policies have become extremely popular with investors looking to supplement their retirement income. If you have accumulated a healthy cash value, you can use these funds in a variety of ways as an asset in your retirement portfolio. Often, these funds are guaranteed to grow tax-deferred for many years, which could really beef up your nest egg.

Most advisers say policyholders should give their policy at least 10 to 15 years to grow before tapping into cash value for retirement income. Talk to your life insurance agent or financial adviser to discuss whether this tactic is right for your unique situation.

Strategy 6: Full Surrender

Of course, you always have the option to surrender your policy and receive the accrued cash value. Before taking this route, it’s important to consider many factors. First and foremost, you’re relinquishing the death benefit when you surrender a life insurance policy – which means your heirs will receive nothing from the policy when you die. In most cases, you’ll also be charged surrender fees. which could greatly reduce your cash value.

Additionally, the cash you receive through the surrender is subject to income tax. If you have an outstanding loan balance against the policy, you could incur even more taxes. Before taking the leap, consult your insurance adviser about the potential consequences and read Cashing In Your Life Insurance Policy .

Don’t let the cash value you have in a permanent life insurance policy accumulate without deciding how you will use it. And make sure the cash value is drained and redeployed later in life.

An agreement between two parties (known as counterparties) where one stream of future interest payments is exchanged for.

An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories.

A form of short-term borrowing for dealers in government securities.

An aggressively managed portfolio of investments that uses leveraged, long, short and derivative positions with the goal.

Records that outline the financial activities of a business, an individual or any other entity. Financial statements are.

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Universal Life Vs Whole Life – Online Insurance Quotes – Start Now #universal #vs


Universal Life Vs Whole Life – Free insurance quotes from the top insurance companies. Compare rates for health, auto, life, home and other types of insurance.

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Life Insurance #life #insurance #definitions #and #terms


Life Insurance

BREAKING DOWN ‘Life Insurance’

The goal of life insurance is to provide a measure of financial security for your family after you die. So, before purchasing a life insurance policy, consider your financial situation and the standard of living you want to maintain for your dependents or survivors. For example, who will be responsible for your funeral costs and final medical bills? Would your family have to relocate? Will there be adequate funds for future or ongoing expenses such as daycare, mortgage payments and college? It is prudent to re-evaluate your life insurance policies annually or when you experience a major life event like marriage, divorce, the birth or adoption of a child, or purchase of a major item such as a house or business.

How Life Insurance Works

Life insurance is a contract between an individual with an insurable interest and a life insurance company to transfer the financial risk of a premature death to the insurer in exchange for a specified amount of premium. The three main components of the life insurance contract are a death benefit, a premium payment and, in the case of permanent life insurance, a cash value account.

Death Benefit: The death benefit is the amount of money the insured’s beneficiaries will receive from the insurer upon the death of the insured. Although the death benefit amount is determined by the insured, the insurer must determine whether there is an insurable interest and whether the insured can qualify for the coverage based on its underwriting requirements.

Premium Payment: Using actuarially based statistics, the insurer determines the amount of premium it needs to cover mortality costs. Factors such as the insured’s age, personal and family medical history, and lifestyle are the main risk determinants. As long as the insured pays the premium as agreed, the insurer remains obligated to pay the death benefit. For term policies, the premium amount includes the cost of insurance. For permanent policies, the premium amount includes the cost of insurance plus an amount that is deposited to a cash value account.

Cash Value: Permanent life insurance includes a cash value component which serves two purposes. It is a savings account that allows the insured to accumulate capital that can become a living benefit. The capital accumulates on a tax-deferred basis and can be used for any purpose while the insured is alive. It is also used by the insurer to mitigate its risk. As the cash value accumulates, the amount the insurer is at risk for the entire death benefit decreases, which is how it is able to charge a fixed, level premium.

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Broker – Online Tools #online #life #insurance #broker


Consultant/Broker and Employer

Employer eServices is a comprehensive, powerful suite of online tools and resources from UnitedHealthcare that simplifies benefits administration.You or your clients can simplify eligibility management, billing and reporting, and manage virtually every aspect of benefits administration online and in real-time, increasing efficiency and saving both time and money.
Take a Site Tour

A consumer-driven health (CDH) online toolkit is available on the Communication Resource Center (CRC) to provide employers with resources, marketing material and tools they need to help manage the transition from a traditional plan to a CDH plan. Access toolkit

Easy-to-use communication tools and distribution-ready materials make it easy for your clients to engage their employees in their health and promote available programs and services.
Take a Site Tour

Sales Automation Management (SAM)

SAM is a new online tool o n UnitedeServices for Small Business quoting and enrollment that modernizes and streamlines these processes and makes it easier to do business with UnitedHealthcare. You and your clients will enjoy a simplified process, reductions in required data and improved case installation turnaround time leaving you more time to grow your business.


The UnitedHealthcare Health4Me SM mobile resource offers members easy access to their health plan information; lets them locate doctors and facilities anytime, anywhere; and provides 24/7 contact with a registered nurse should they have questions. View video

myuhc.com offers both practical and personalized easy-to-use online tools and information so your clients’ employees clearly understand their health care choices and get the most out of their health care benefits. Your clients develop an engaged, informed and self-reliant workforce capable of finding the information that matters most right at their fingertips from finding a physician to seeing the status of current claims, and much, much more.
Take a Site Tour

Members have a number of online and mobile tools to support them in making better decisions when it comes to managing health, insurance benefits and costs. The Consumer Resource Guide will help them understand what some of those resources are, and how they can be used in every-day life.

Quick Links

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Indian Insurance Online, Compare Indian Insurance, Travel insurance India, health insurance India #indian #insurance


India Insurance Online – Compare and buy Travel, Student and Health Plans

People travel to different destinations for various reasons. Whether it is domestic or overseas travel, medical insurance is required to secure the traveler from unforeseen medical emergencies. Travel insurance is available either for a single or for multiple trips. Those who are travelling to European countries are required to purchase insurance to be issued the Schengen visa.

Students who are going to pursue higher education overseas should purchase student medical insurance to safeguard in case of any medical emergency. Most foreign universities also mandate health insurance for international students. These policies cover the insured for medical expenses, emergency evacuation, repatriation, dismemberment, loss of sponsorship, compassionate visit etc.

Health care is exorbitant now-a-days and can leave you with huge bills in case of hospitalization. Buy Mediclaim insurance to get financial assistance in case of hospitalization due to health. Health insurance policy covers the insured for medical expenses that is incurred during pre and post hospitalization stages. The coverage is available either for individuals and for the entire family.

Read About e indiainsurance

e indiainsurance is a pioneer in offering Indian insurance policies online so that the customer can purhcase using a credit card, debit card or a cheque. We have provided online services to over 30,000 satisfied customers so far. At EIndiaInsurance, we have developed user friendly web tools to help customers make an informed decision while purchasing online insurance. We provide an extensive listing of available policies and have developed an “insurance comparison” tool. This tool provides the user with free quotes and allows the customer to compare plans based on the user input. Customers can view policy brochures, compare in detail and even buy the policies directly using a credit card. Comparing insurance policies can save you significantly, sometimes as high as 30% of the overall premium. Compare and buy the travel insurance policy that can best suits the requirements of you and your family.

Along with the comparison tool, we also provide relevant resourceful information regarding insurance products and have answers to frequent questions. We offer mediclaim health insurance, overseas travel insurance, student insurance, home insurance and accident insurance plans underwritten by top companies like TATA AIG, Bajaj Allianz, ICICI Lombard, Reliance, Future Generali, Apollo Munich and Cholamandalam.

What People Say

Good Customer Support
This to convey our gratitude to your customer support team for having guided us very well in procuring our overseas travel insurance.

Efficient support
Thanks ( to you and your colleagues) for the timely and very efficient support given in getting this endorsement done in time. It is always a pleasure to be a recipient of efficient service !Thank you very much for all the procedure by taking personal attention.

Quick service
Pleasantly surprised with the quick response I received from the travel insurance advisor at Eindiainsurance on account of my recently posted query for my dad’s travel and health coverage in Singapore from India.

Mediclaim Insurance Service
Your customer support staff member was very clear and I am very impressed and convinced by his explanations regarding the health policies.

Religare Mediclaim Feedback
I had been calling different health insurance companies for last couple of days..never got satisfaction as either they were ill informed about their product or they were not been able to explain properly.
Iniatailly spoken to your customer support team and then they have handed me over to concerned person. you guys were amazing. so to the point so well prepared for your product..so prompt. so polite.if I were to rate you guys I give 10 out of 10. I wish you both a successful career ahead.
P.s. any one asks me abt health insurance I am surely gona reccommend your customer support
Buddha bless you.

Shamsher singh, Manali

Good Overseas travel Insurance
Thanks for providing your good insurance policies.

Prompt Action
Thankyou so much for the prompt action at your end regarding the travel insurance for my mother.

Efficient Service
I am grateful for all the trouble you took to follow up. My visa appointment is next week, so I am greatly relieved.

Geeta DetheBalasubramanya T

Promptness and Efficiency of Service
Got the insurance policy. I was in urgent need of the policy as I have to appear for the visa interview tomorrow morning and thats why I called the executive at Eindiainsurance.

India Mediclaim Insurance Policies

Mediclaim insurance refers to insurance coverage for health. Mediclaim insurance is advisable for all people, and it is prudent to purchase this insurance at a younger age when one does not have any medical ailments. Often people try to purchase mediclaim insurance at an older age, however if they already suffer from ailments, these will be considered as pre-existing situation and will not be covered.

Mediclaim insurance if you are travelling out of India is called overseas mediclaim insurance. Your domestic health insurance becomes ineffective once you are out of your home country. Health insurance in India is commonly known as Mediclaim and covers you for medical expenses during an emergency. Overseas Mediclaim insurance helps you to travel safely. The consumer can buy domestic or overseas mediclaim insurance according to his/her requirements.










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  • UniWyo Federal Credit Union #valic #life #insurance


    Dec. 25, 2017 – Jan. 1, 2018

    Fraud Phone Calls and Text Messages
    Laramie residents have reported receiving phone calls and text messages from someone claiming to be from a financial institution saying there is an issue with their debit card. They then ask for the debit card number and CVV number on the back of the card. These calls and messages are NOT coming from UniWyo and we would never ask for your personal information such as this over the phone or via text message. Do NOT provide your card number or any other information to them. Please be vigilant with regards to your personal information and be aware of this scam. Please share with family and friends so they may be protected as well.

    Mobile Phone Security
    Mobile Phone Security is critical to protecting yourself from hackers and other malicious software that could steal your data. Watch out for suspicious texts and install Anti-Virus software on your phone. The key is awareness – don’t be a victim!

    UniWyo Mobile Banking App is available in Apple App Store
    For those members using iPad or iPhone, we have a mobile banking app available in the Apple App Store! Simply search for UniWyo and you will find it. Download it today!

    UniWyo Mobile Banking App is available in Android Marketplace
    For those members using Android powered smartphones, we have a mobile banking app available in the Android Marketplace! Simply search for UniWyo and you will find it. Download it today!

    Phone banking and online banking are available 24/7 to serve you!

    UniWyo Offers Statement Rewards
    Login to Online Banking to view your transactions and start saving money today!

    UniWyo has a Mobile Site
    Browse to www.uniwyo.com on your mobile device to get started! Also available as an app for iPhone and Android users.

    UniWyo Offers an Online Financial Management Product
    Login today to discover our Online Financial Management product – free to members of UniWyo!

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    Term Life Insurance Quotes and Rates #term #life #insurance,life #insurance #rates,term #life #insurance #quotes,life


    Spectrum Insurance Group

    Get Instant Term Life Insurance Rates in Less Than a Minute

    Whether your term life insurance need is short term or long term, temporary or permanent, meant as an investment, or a retirement vehicle. We will give you the right information and the most appropriate quotes instantly.

    We will explain, compare features, compare rates on your term life insurance, and also help you determine the right type of insurance that matches your situation. We’ll obtain the best possible life insurance rates for your circumstances.

    All this information for free without any obligations!

    Give the consumer simple objective term insurance advice and the best service available. This simple philosophy is practiced as our mantra. These guiding principles have helped us become a premier provider of online life insurance quotes and helped win numerous industry awards for Outstanding Customer Services and Sales.

    Term life insurance is a simple and affordable way to ensure your beneficiary financial security in the event that you die within the period of, or term of the policy. The term of the policy can vary from one to thirty years of coverage. The face amounts stay level throughout the term and generally begin at $25,000 and increase to meet your specific needs.

    Types of Life Insurance We Sell:

    Term life insurance is affordable because it does not accrue a cash value and only pays the death benefit. Therefore, the initial premium is much lower, allowing you to easily budget for your coverage. This option offers great value to an individual that needs a death benefit for a specific period of time.

    For example, term life insurance is a good choice for people that have started a family and need to consider paying for college, have amortized loans, or have a specific financial burden that will decrease over time. After the kids graduate from college, the amortized loans are paid down, or the specific financial burden has decreased, the need for cost effective high levels of coverage may not be as great. At this time your options vary.

    Term life insurance policies (10 year, 20 year, 30 year) can usually be renewed at the end of the term. Perhaps at this point in your life a shorter term and smaller face value will adequately meet your needs.

    Keep in mind that there is a direct correlation between age, health and premium costs. Subsequently, with advanced age and the health issues associated with age, your premiums will probably be higher and eligibility is not as easy. You may want to consider converting to a permanent life insurance policy at this time.

    Get Simplified Information:

    Often information is sought from surfing web pages endlessly and ultimately making it more confusing that when you started in the first place. All you need to do is input the information asked, and our quote engine will give simplified information instantly that will enable you to make the right decision for your insurance needs. We help you access information simply and easily.

    No matter what is your level of risk – smoker. pilot. diabetic. key man – we can help you find the best life insurance policy for your particular situation.

    Not sure if you should get Term or Whole Life Insurance, read our opinion on this subject – Whole Insurance vs Term Insurance. Or explore a No Medical Life Insurance policy and avoid the hassle of an insurance medical exam upon applying.

    24 Hours Access:
    Being online makes it all the simpler. You can access us on a 24×7 basis through out the year. By just filling up the quote form or calling us on our toll free number, you can start saving money today.

    Pact of Privacy:
    You can always be sure that the information supplied to us will only be used for the purpose of quoting term life insurance rates by us or one of our trusted partners.

    Giving the right information to our customers is our business!

    Customer Testimonials:

    Thank you for taking the time to discuss all of my options with me. I never felt pressured to buy, but I am certain I got the right term life insurance for my needs — Ken. Raleigh, NC

    Allowing me access to you through this entire process provided me with more than great customer service it gave me piece of mind and confidence I have made the right decision — Janet, Pensacola, FL

    I am always overly critical of other insurance related websites on the internet, but I have to stay your website has great information and was easy to use. I like how your quote page displays real time rates from all the insurance carriers. The side by side comparison made the process of shopping for life insurance simple and fast! Keep up the great work — Scott, of Schuerman Insurance

    I was already so frustrated with this process and the many online life insurance websites who were more interested in selling my information than assisting me. However, when I found SpectrumInsuranceGroup.com I received all of the answers to my questions and the personalized service I was looking for. The pressuring phone calls stopped, and I was able to work with one individual through this whole process. Steve of Spectrum Insurance Group is professional, courteous, and in my opinion truly enjoys helping people protect their family and loved ones. I would recommend him to anyone! — Margaret, Alpine, Utah

    For all your real estate needs in the Hampton Roads area of Virginia, visit Searchhamptonroadshomes.net – Tom will take good care of you.

    2017 – Spectrum Insurance Group. All Rights Reserved

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    Massachusetts Insurance #life #insurance #in #massachusetts


    Welcome to Downey Insurance Agency – your trusted source for Massachusetts insurance—and beyond!

    Founded in 1928, in a small office in downtown Marlborough Massachusetts, Downey Insurance Agency has evolved into one of the most respected independent insurance agencies in New England. After over 70 years in its Massachusetts location, Downey Insurance Agency has broadened its horizons—developing into a leading New England insurance company as well.

    Downey Insurance Agency continues to prove that the agency is dedicated to serving the coverage needs of individuals, families and businesses all across New England .

    As an industry leader, ranking high for our ability to provide quality protection, superior customer service and the lowest rates on Massachusetts insurance and beyond we take pride in what we do. We represent various nationwide insurance carriers, enabling our expert agents to effectively compare rates and coverage to ensure our clients receive the quality protection they deserve. Our extensive network of providers guarantees that we can secure superior Massachusetts insurance. and New England insurance for a multitude of coverage needs!

    At Downey Insurance Agency it’s our job to assist you in identifying your needs, while putting together a customized coverage plan that is effective, yet easy to understand. We strive to match you with the most comprehensive insurance package that caters to your unique lifestyle. Our knowledgeable agents are well versed on all aspects of the insurance industry so no matter where you are located across New England—whether it’s something as broad as MA insurance or a bit more specific —we’ve got you covered with a dependable policy you can count on!

    We welcome you to join our family and learn about our broad book of options for Massachusetts insurance as well as coverage strategies within New England.

    At Downey Insurance Agency we strive to design you a comprehensive insurance package that fits your distinct lifestyle, so whether you are looking for Auto Insurance. Home Insurance or Business Insurance —rest assured because we’ve made your coverage needs our top priority! We offer all of the skill and expertise you would expect from a long-standing, client-focused insurance agency.

    At Downey Insurance Agency we certainly don’t stop there either! Be sure to ask one of our insurance professionals about our expert coverage options available for Life Insurance. our specialized Church Insurance and more!

    Here at Downey Insurance Agency, we consider everyone and every policy to be unique—which is why you need, Downey Insurance Agency – the preferred choice for Massachusetts insurance and beyond – to create a tailored, custom policy exclusively for you.

    Contact Downey Insurance Agency, to speak with an agent and discover your options for exceptional coverage strategies right now! And remember—we’re happy to be your MA insurance agency of choice, but we’ve also gladly grown into a superior New England insurance company as well! So whatever your coverage needs may be, trust us to protect you—give us a call and receive your free insurance quotes today!

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    Life Insurance: Cash Value & Surrender #life #insurance #face #value


    Cash Value of Life Insurance Policy

    If you are considering permanent life insurance – such as whole life, universal life, or variable life insurance – you probably know that these types of policies provide both death benefits and cash value accumulation. You can use the cash value for many different needs, including your living expenses in retirement.

    Ways to Use Life Insurance Cash Value

    • Pay your policy premium
    • Borrow from the cash value to pay large expenses, at a lower rate than banks offer
    • Structure an investment portfolio that maintains and accumulates wealth
    • Use the cash value for expenses in retirement

    Cash Value Life Insurance Definition

    Cash value life insurance is a type of permanent insurance policy consisting of a “death benefit,” which is a standard part of all life insurance policies, as well as a cash value accumulation feature. Whole life, universal life, and variable life insurance are the three primary types of cash value life insurance.

    When you pay your premium, a portion of that payment is allocated towards the cash value. The life insurance company invests the money into a conservative-yield form of investment. The cash value grows over time as you continue to pay your premium and through the interest you earn.

    The life insurance cash value is the amount of money you have built up through your premium and investment interest for the length of time you have owned the policy.

    How Does Cash Value Life Insurance Work?

    When you pay your insurance premium for a permanent life insurance policy, the money is generally allocated in three portions:

    1. Payment for the face value of the insurance policy or death benefits, which your beneficiary or beneficiaries will receive after you pass away
    2. Payment for the insurer’s cost for administering the policy
    3. Payment toward the cash value, which is subsequently invested by the life insurance company

    The cash value builds from a combination of each premium payment you make and the interest earned from the investments made by the life insurance company.

    The cash value generally grows slowly in the first few years of the policy then experiences more significant growth later. The cash value accumulation then slows again as the policy holder ages and more of the premium is applied to the death benefits.

    Life Insurance Cash Value Growth

    The life insurance cash value growth is dependent on both the premium and how well the life insurance company’s investments perform. Some forms of permanent life insurance policies offer a guaranteed minimum rate of return. You’ll benefit when the investments perform well; you earn a higher return on the investments, and can be protected if the policy has a guaranteed rate of interest when economic times are slower. Additionally, some insurance companies will also pay a dividend if fewer life insurance policies are paid out in a given year.

    The rate of return on the investments made by any life insurance company varies for a variety of reasons:

    • Some investment portfolios perform better than others
    • The strength of the investment market fluctuates
    • The account managers handling the investment portfolios have varying rates of success

    The overall return rate of investment on a policy that has been in place long term can be 4.97% or higher on an annual average for the life of the policy. When you are comparing life insurance companies and policies, be sure to work with a knowledgeable independent agent who can assess how well various permanent life insurance companies have performed.

    Life Insurance Cash Value Tax

    You might be wondering if and when you have to pay income tax on the cash value portion of your policy. This is how the tax situation works.

    • Whole life non-participating policy and universal life insurance policy: As long as cash value continues to grow in an active policy, the cash value is not taxable until one of the following occurs:
      • You cancel or “surrender” the policy
      • You transfer the life insurance policy, such as when you assign or sell the policy
      • The policy is no longer considered a life insurance contract by the IRS
    • Participating whole life policy: The same applies to these policies with above described conditions, but there is a slight difference when it comes to the payment of the dividends on a “participating” whole life insurance policy. In a participating whole life policy, dividends are paid out to the policy holder and are considered to be a “return of premium.” The policy holder has four choices to choose from in how to use the dividends:
      1. Buy more coverage
      2. Use the dividends to reduce the future amount of your premiums
      3. Reinvest the dividends
      4. Receive the dividends in cash

    These dividends are not taxable until or unless the dividends you receive exceed the total amount of premiums paid on your particular policy. Any dividends you receive that exceed the total amount of premiums paid on your policy are considered taxable. The excess dividends will be taxed regardless of how you use them.

    Cash Value vs. Surrender Value

    The cash value and the cash surrender value are inherently the same. The difference between the cash and the surrender value is that if you surrender your policy (for example, if you choose to cancel and cash out the life insurance policy), you will receive the cash value that has accumulated less any applicable surrender charges; these charges are pre-determined by the life insurance company, and are stipulated in your policy contract.

    Note that there is a “surrender period,” which is the period of time that a policyholder must wait before it is possible to receive the cash value of the policy upon canceling. If the policyholder cancels the policy before the end of the surrender period, it is not likely the policyholder will receive any amount of the cash value because these costs are incurred by the insurance company to set up the policy.

    Borrowing Against Your Life Insurance Cash Value

    After the surrender period ends, you can typically take out a loan against a portion of the available cash value. Note that you should only do so for an express purpose, and that there are several things to consider:

    • This loan can be taken out without having to pay taxes on it
    • You are not required to repay this loan back to the insurance company
    • The insurance company will charge the interest rate on the outstanding loan
    • Both the interest the company is charging for the loan and the amount of cash value you borrowed will be deducted off the death benefits if you die while the policy is still in force, unless you have repaid the loan

    A life insurance cash value policy can help you build up a substantial savings over time and can be especially advantageous if you aren’t very investment savvy or have difficulty saving money for your retirement.

    There are many different versions of these types of policies and they vary in how they are structured. You are best advised to contact a local independent agent in the Trusted Choice network who can provide unbiased information about cash value life insurance policies versus term life insurance policies. One of these agents, right in your area, can help to evaluate your financial needs and goals and answer your questions about various life insurance options.

    Find an agent today to learn more about permanent life insurance cash value policies and get the coverage you need.

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    Accidental Death Insurance: Farmers Insurance #accidental #death #insurance, #accidental #death #life #insurance


    Accidental Death Insurance

    An Accidental Death Insurance policy 2,3 from Farmers New World Life Insurance Company can provide an affordable way to help provide financial support should the unexpected occur.

    Life can change in the blink of an eye

    Life insurance is intended to help protect your family’s financial well-being, but at Farmers we know that a sudden, accidental death can put even more strain on a difficult situation. That’s why we offer an Accidental Death Insurance policy.

    Every time you get in a car, as a driver or passenger, or if you travel by air regularly, you’re taking a risk. If you travel frequently, work in or around potentially hazardous environments, drive for a living, or work with heavy equipment, an accidental death insurance policy may help provide financial support for your loved ones should the unexpected occur.


    Farmers Accidental Death Insurance helps provide financial protection against accidental death 24 hours a day. You can select from $50,000 to $200,000 in accidental death insurance protection. 4 Should the unexpected occur, your policy benefit can be used to help pay for out-of-pocket medical costs, lost wages or other expenses – providing you with reassurance, and helping provide for the financial well-being of the ones you care about most.

    Coverage of $100,000 for $8 a month

    Farmers Accidental Death Insurance is currently available in: AL, AR, AZ, CA, GA, IA, IN, KS, MO, MT, ND, NE, NM, NV, OR, SD, TN, TX, UT, WI and WY.

    2 Policy form 2013 ADB or applicable state variation.

    3 This is an accidental death only policy. No benefits are paid for a death from sickness, disease or natural causes. We will not pay the Insured Benefit for a death which is caused by, results from, or is contributed to by:

    1. Suicide, attempted suicide, or intentionally self inflicted injury, while sane or insane;

    2. declared or undeclared war or any act of war;

    3. injury sustained while performing military duty or active service;

    4. participating in a riot;

    5. committing a felony;

    6. sickness or its medical or surgical treatment, including diagnosis or any bacterial infection except through a wound accidentally sustained;

    7. operating or riding in any kind of aircraft except as a fare paying passenger on a commercial flight;

    8. voluntary gas inhalation or poison voluntarily taken, administered or inhaled;

    9. being under the influence of alcohol or having a blood alcohol level at or above the legal limit at which it is unlawful to operate a motor vehicle (as defined in the state where the accident occurred);

    10. taking any drug, medication, narcotic or hallucinogen unless as prescribed by a physician;

    11. operating a mechanical or motorized device or motor vehicle while having a blood alcohol level at or above the legal limit at which it is unlawful to operate the mechanical or motorized device or motor vehicle (as defined in the state where the accident occurred, or, if there is no limit specific to the motorized device, the limit at which it is unlawful to operate a motor vehicle);

    12. riding in or driving any type of motorized vehicle in any kind of speed contest.

    The above exclusions may vary by state.

    4 After age 65, coverage is reduced per the terms of the contract. Coverage terminates at age 80 (75 in California).

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