Sentences with phrase «actual death benefit paid»

Please avoid expressing beneficiary shares as dollar amounts since the actual death benefit paid may be more or less than the original policy face amount.

Not exact matches

In many ways, indexed universal life insurance works in a similar fashion as most other types of coverage in that the policy holder pays their premium, and the net premium is then applied to the actual life insurance death benefit.

Misstatement of Age If the age of the insured is misstated and is not discovered until death of the insured, the insurance company has the contractual right to adjust the death benefit to reflect the face amount that would have been paid with the corrected age and actual premiums paid.

The face amount of the policy is the initial amount that the policy will pay at the death of the insured or when the policy matures, although the actual death benefit can provide for greater or lesser than the face amount.

The only other time such accumulation might be taxable is upon payment of the death benefit, and for the same reasons — the distribution exceeds cost basis (or interest paid on the death benefit from the actual date of death to the time of the death claim payment).

Pay particular attention to the guaranteed death benefit and premium - payment sections because these columns contain the actual company promises.

If the age of the insured is misstated and is not discovered until death of the insured, the insurance company has the contractual right to adjust the death benefit to reflect the face amount that would have been paid with the corrected age and actual premiums paid.

Additionally, you may elect to purchase the policy so that a level death benefit is purchased and the cash value accumulates «on top of» or in addition to the death benefit or you may choose to purchase a level death benefit in which the cash value acts as a reserve against the death benefit (thus lowering the actual cost you pay for the death benefit over time).

Things like loans, withdrawals, or dividend payments used to buy additional paid up insurance can affect the actual death benefit of permanent forms of life insurance.

If the underlying mortality assumption is too low, a life insurer may underestimate the actual cost of insurance and may have to pay out more death benefit claims than it had forecast.

In case of death of life insured due to actual or attempted suicide within 12 months No benefit is payable, except to the extent of a maximum of 90 % of single premium paid excluding any extra premium (in case of single premium policies).