Cash value life insurance, also known as universal life or whole life insurance, is a form of life insurance that builds cash value. You can use this cash value for a number of different options including pay premiums due, withdraw a portion of the cash to use as retirement income, or surrender the entire policy …
An IUL policy is an acronym for indexed universal life insurance. The history of universal life insurance goes back to the 1970s but the advent of IUL is fairly recent. In fact, what we now know as the modern IUL policy only dates back to the mid-1990s. IUL policies use an index, usually a stock …
If you are looking to borrow against your life insurance you have to ensure that you have the correct type of policy and that your policy has cash surrender value. Once you determine that you have a type of life insurance that permits borrowing and that you have cash value against which you can borrow, …
Term to 100, as people commonly refer to it, isn’t term life insurance at all. It’s actually a form of universal life insurance known most commonly as Guaranteed Universal Life Insurance. While this life insurance product is technically a form of permanent cash value life insurance, it functions much more like term life insurance, and …
A partial surrender of a life insurance policy releases some of its cash value while keeping the policy in force. This means the policy owner can remove some of the cash value in his/her policy without having to cancel the entire policy. Life insurance policy owners most commonly make use of this feature either when …
Universal life insurance provides the policy owner with two different death benefit options. One option is a constant or level death benefit, while the other increases over time based on some feature of the policy (either cash value accumulation of premiums paid). When you apply for a universal life insurance policy, you will need to …
The primary difference between accumulation value and cash surrender value is any applicable surrender charge to the life insurance or annuity contract. Accumulation value is the full accumulated cash value in the policy. Cash surrender value is the accumulated value minus any applicable surrender charge or market value adjustment (MVA). It’s important to understand, however, …