Glossary entry (derived from question below)
English term or phrase:
make payment with life insurance
English answer:
use cash value of insurance to make payments
Added to glossary by
Yvonne Gallagher
Sep 24, 2013 08:40
10 yrs ago
1 viewer *
English term
make payment with life insurance
English
Bus/Financial
Insurance
The sentence I don't understand: "You can make payments if you like, pay interest only, or allow the contract to pay its own interest through borrowing against remaining cash value if there is enough."
Context details:
The article makes a comparison between life insurance and annuity.
It is pointed out, that while you can't borrow money from an annuity or use it as collateral, with life insurance, you can do both. You can borrow money from the cash value of life insurance, and you can also "make payments if you like, pay interest only, or allow the contract to pay its own interest through borrowing against remaining cash value if there is enough".
I don't get the meaning, especially the meaning of the second half of the sentence. Would you please explain it for me using simple English? Thank you in advance.
Context details:
The article makes a comparison between life insurance and annuity.
It is pointed out, that while you can't borrow money from an annuity or use it as collateral, with life insurance, you can do both. You can borrow money from the cash value of life insurance, and you can also "make payments if you like, pay interest only, or allow the contract to pay its own interest through borrowing against remaining cash value if there is enough".
I don't get the meaning, especially the meaning of the second half of the sentence. Would you please explain it for me using simple English? Thank you in advance.
Responses
| 4 +2 | use cash value of insurance to make payments |
Yvonne Gallagher
|
Change log
Oct 7, 2013 07:48: Yvonne Gallagher Created KOG entry
Responses
+2
38 mins
Yvonne Gallagher
Ireland
Ireland
Native in English
&
English
Works in field
Ireland
right word, right place. everytime
Native in: English (Variants: Irish, UK, US, Canadian) 
Works in: French to English, Spanish to English, English, and 1 more.
Related KudoZ points
:
24
Selected
use cash value of insurance to make payments
The text says you can borrow money and use your insurance contract "cash value" as collateral.
When you borrow money from the cash value of life insurance, as long as the contract remains in force, there's no tax. You can make payments or pay interest by borrowing using the cash value (of your insurance) as collateral or, if you have enough cash value (remaining or left in your insurance) you can set up the contract to pay its own interest by borrowing from the cash value (if there's enough cash value remaining).
Hope this helps
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Note added at 1 hr (2013-09-24 10:08:26 GMT)
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cash value =surrender value or cashing-in value
http://en.wikipedia.org/wiki/Cash_value
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Note added at 12 days (2013-10-07 07:48:08 GMT) Post-grading
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glad to have helped
When you borrow money from the cash value of life insurance, as long as the contract remains in force, there's no tax. You can make payments or pay interest by borrowing using the cash value (of your insurance) as collateral or, if you have enough cash value (remaining or left in your insurance) you can set up the contract to pay its own interest by borrowing from the cash value (if there's enough cash value remaining).
Hope this helps
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Note added at 1 hr (2013-09-24 10:08:26 GMT)
--------------------------------------------------
cash value =surrender value or cashing-in value
http://en.wikipedia.org/wiki/Cash_value
--------------------------------------------------
Note added at 12 days (2013-10-07 07:48:08 GMT) Post-grading
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glad to have helped
4 KudoZ points awarded for this answer.
Comment: "thanks"
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