Life insurance policy

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Related to Life insurance policy: Term Life Insurance Policy

Life insurance policy

The contract that sets out the terms of life insurance coverage.

Life Insurance

An insurance policy where, in exchange for a premium, the insurance company pays a certain benefit to the survivors of the policyholder upon his/her death. Life insurance can help defray costs of the funeral, pay off the estate's debts, and may provide for the survivors' (notably a widow or widower) future. There are two main types of life insurance. Term life insurance lasts only for a certain period of time and pays the death benefit only if the policyholder dies during that time. Whole life insurance lasts as long as the policyholder remains alive and provides a savings component against which the policyholder can borrow under most circumstances.
References in periodicals archive ?
Some consumers may even want to consider investing in a tax-sheltered permanent life insurance policy now with the anticipation of cashing it out later for retirement income.
Now, anyone over the age of 70 with a life insurance policy who is in serious need of money can qualify for what is called a "senior settlement," an increasingly popular option.
Most important, the cash surrender value fails to provide transparent reporting because it distorts income and undervalues the future benefits of life insurance policy investments.
The seller submits to the buyer the necessary paperwork, including an application, a copy of the life insurance policy, an in-force ledger (an annual schedule of policy details) to age 95, an authorization form, a copy of any trust agreement if the policy is trust-owned and the insured's medical records for the past two years.
Parents may consider borrowing money against the insurance policy as a way to take advantage of a life insurance policy without a return of premiums.
Now suppose a producer persuades the participant to use $49,000 to pay for a whole life insurance policy.
In general, a business cannot deduct premiums paid on a life insurance policy (even though they are otherwise deductible as a trade or business expense) if the company is directly or indirectly a beneficiary under the policy and the policy covers the life of a company officer or employee or any person (including the company) with a financial interest in the business.
In general, a charitable split-dollar insurance transaction involves a transfer of funds by a taxpayer to a charity, with the understanding that the charity will use the transferred funds to pay premiums on a cash-value life insurance policy that benefits both the charity and the taxpayer's family.
For many people in mortal crisis, the only way they can get any financial relief is by tapping the sanctity of their homeownership or life insurance policy.
Under the proposal, life settlements would be added to the definition of viatical settlements, so the model would cover any sale of a life insurance policy for less than its face amount.

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