Tag: "cash surrender value"
Borrowing Against Life Insurance
Reader Question: Does borrowing against my Life Insurance Policy reduce its value? I need some funds to cover an unexpected expense, but do not want to affect my policy’s value. Thanks, Ritchie Thanks for your question, Richie. It will not if the loan is repaid. Whole life, universal life and variable life insurance policies unlike [...]
Surrendering Life Insurance Policy
Reader Question: What are the consequences of surrendering my Life Insurance Policy? I’m very confused; will you explain this to me? Thank you, Deana Thank you for your question, Deana. When you surrender your Life Insurance you are canceling the policy altogether. In these difficult economic times you may consider liquidating assets for cash; you [...]
Cash Surrender Value Of Whole Life Insurance Policy
The premium that you pay for whole life insurance is calculated to provide sufficient funds to cover the risk and to create cash value. Policy reserves Part of the premium is transferred to form policy reserves, to fund what would otherwise be an insufficient premium in later years. For all permanent insurance contracts, this serves [...]
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