Frequently, in current assumption policies the company sets aside an amount of the remaining cash value
as collateral for the loan.
Biders such as accelerated death benefits allow terminally or chronically ill policyholders to get cash value
Here, the issue was whether the insurer could automatically deduct 20 percent of a contractor's overhead and profit in addition to depreciation in order to reach actual cash value
Instead of selling the policy back to the issuing insurance company at less than market value, or allowing the policy to lapse and forfeiting the value, life settlements can maximize the cash value
for the policy owner.
After working with her accountant to select a provider she receives $314,735 for the policy--an economic gain of $246,439 over the cash value
she would have received from simply surrendering the policy.
After a traditional whole-life insurance contract from a high-dividend-paying mutual company has been maintained for eight or nine years, the employee may be in a position to borrow the cash value
to repay the loan.
Only cash value
insurance may be purchased, since the plan is obligated to make investments, not side bets, on the life expectancy of the insured!
Proper replacement cost and actual cash value
evaluations are critical because commercial insurance contracts include co-insurance clauses.
If the employer has no interest in the cash value
or an expectation of repayment of premiums, the premiums are treated as compensation but the employee needn't report any income from the value of the death benefit protection or recognize income as a result of the cash-value buildup.
District Court for the District of Nebraska certified the following question to the Nebraska Supreme Court: "May an insurer, in determining the 'actual cash value
' of a covered loss, depreciate the cost of labor when the terms 'actual cash value
' and 'depreciation' are not defined in the policy and the policy does not explicitly state that labor costs will be depreciated?"
The first step lies in establishing the difference between two key concepts--Replacement Cost Value (RCV) and Actual Cash Value
In other words, the face value minus the built-up cash value
(NYSE: VOYA) said it has launched Voya Indexed Universal-Life Accumulator (IUL-Accumulator), a new cash value
life insurance solution as part of its individual life business that allows consumers to build cash value
that can be used to supplement retirement income while protecting the financial future of their loved ones.
The MTT found the Allemons' Tipsico Lake property had a true cash value
of $231,000 in tax year 2011 and $225,390 in tax year 2012, and their Milford Road property had a true cash value
of $140,000 in tax year 2012.