To illustrate, understand that very few «term life policies» ever pay a death benefit because the insurance company has determined that the policy will likely expire
before the death benefit is ever paid... and most do.
This is
before a death benefit is ever paid out.
If the insured and the primary beneficiary have died
before the death benefit was paid out, the contingent beneficiary receives the life insurance proceeds.
There are two hurdles that may have to be met
before the death benefit is made.
But survivorship policies, since both policyholders will die
before the death benefit is paid, work best as a way for families to pay for estate taxes, burial plans, or as a way for the policyholders to leave a legacy for their heirs.
Second, with survivorship policies, the insurer knows it'll likely be longer
before the death benefit is paid out since both policyholders have to die before that happens.
However, both insureds must die
before a death benefit is paid - in other words, only after the death of the second insured.
There will definitely be a 2 or 3 year mandated waiting period
before any death benefits are paid out.
Even if the policyholder dies within the window of policy coverage, your beneficiaries may still have to wait a probationary period of 1 to 3 years
before death benefits are paid out.
The Graded Benefit Whole life policy may require that you survive the first 2 years from when the policy is approved
before the death benefits apply.
In that case, the lumpsum paid on account of the rider can take care of hospitalisation expenses,
before the death benefits are paid to the family.
Just remember that if you don't pay back the loans
before the death benefit is paid out, it will reduce the proceeds that your heirs receive.
From the insurance company's perspective, a younger person is calculated to have a longer remaining life expectancy, giving the funds paid in the premium more time to grow
before the death benefit is expected to be paid out.
Which means there waiting period of anywhere from 1 — 3 years where you must survive
before death benefits become payable to your beneficiary.
Life insurers have ample reason to err on the side of caution: The Centers for Disease Control and Prevention estimates that smoking cuts life expectancy by 10 years, limiting the amount of premiums insurance companies can collect
before a death benefit will have to be paid.
For patients with stage 4 breast cancer, their only option is going to be a guaranteed issue policy, and they'll have to survive at least two years
before the death benefit will be available.
If two children were to pass away
before the death benefit was paid, the remaining two will receive a proportional amount, so each will now receive 50 % of the total benefit in this scenario.
From the insurance company's viewpoint, a young person is considered to have a longer remaining life span, allowing the cash paid in more time to increase
before the death benefit is anticipated to be paid out.
Sometimes, life insurance policies are cancelled before the policyholder dies and
before the death benefit is paid.
To illustrate, understand that very few «term life policies» ever pay a death benefit because the insurance company has determined that the policy will likely expire
before the death benefit is ever paid... and most do.
If you were to choose or be forced into the «Graded Plan», there will be a waiting period
before the death benefit becomes active.
Also, there is oftentimes a waiting period
before the death benefit is paid out to the policy beneficiary.
From the life insurance company's perspective, a younger person is expected to have a longer remaining life span, giving the funds paid («the premium») more time to grow
before the death benefit is expected to be paid out on your policy.
Ultimately, this means that there will be a certain amount of time
before the death benefit is active — this is in place to protect the insurance company because you could set up a policy and pass away a week later.
And lastly, they have a 2 - 3 year waiting period
before the death benefit is activated, giving them some cushion before they really assume the risk.
Not exact matches
A
death benefit is paid to your heirs only if you die
before the term expires.
Lots of little gems in this book, including the fact that a spouse must be married at least nine months
before being eligible for survivor
benefits (unless the
death is ruled «accidental» by a faceless panel of S.S. bureaucrats).
Finally, if you die
before the loan is paid back, the loan amount will be deducted from the
death benefit your beneficiaries receive.
¹ Access to cash values through borrowing or partial surrenders will reduce the policy's cash value and
death benefit, increase the chance the policy will lapse, and may result in a tax liability if the policy terminates
before the
death of the insured.
They also have a
death benefit, meaning that if you die
before you started receiving payments, your beneficiary can receive a specified amount.
If you were to die
before paying back your policy loan, the loan balance plus interest accrued is taken out of the
death benefit given to your beneficiaries.
Whole life insurance policies are generally more expensive than alternatives, such as term life insurance, and the
death benefit directly impacts that cost, so it's important to evaluate your family's needs
before deciding to purchase.
Unless the value that you withdraw is paid back to the insurance carrier
before your
death, the balance of your loan will be deducted from the
death benefit, and the carrier will need you to repay the interest on the loan as well.
That means, if you were to die
before the end of the term, your beneficiaries would receive the
death benefit.
I also wonder if there is some ongoing
benefit in the lives of others we influence
before death.
The Book of Common Prayer had this meaning in view when it employs, in the course of the Prayer of Consecration in the service of Holy Communion, the words: «Wherefore, O Lord and heavenly Father, according to the institution of thy dearly beloved Son our Savior Jesus Christ, we, thy humble servants, do celebrate and make here,
before thy Divine Majesty, with these thy holy gifts, which we now offer unto thee, the memorial thy Son hath commanded us to make; having in remembrance his blessed passion and precious
death, his mighty resurrection and glorious ascension; rendering unto thee most hearty thanks for the innumerable
benefits procured unto us by the same.»
Before dying, the living subject will imagine that somebody
benefits from his
death, and will be reimbursed by the knowledge that his
death is significant in some fashion or other.
Wherefore, O Lord and heavenly Father, according to the institution of thy dearly beloved Son, our Savior Jesus Christ, we thy humble servants do celebrate and make here
before thy divine majesty, with these thy holy gifts which we now offer unto thee, the memorial thy Son hath commanded us to make, having in remembrance his blessed Passion and precious
Death, his mighty Resurrection and glorious Ascension, rendering unto thee most hearty thanks for the innumerable
benefits procured unto us by the same.
Whether they fed on him by faith in their hearts with thanksgiving by eating the bread and drinking the wine with «him at meal, or whether they gratefully permitted him to wash and dry their feet
before the meal in anticipation of being cleansed by his blood on the cross, the meaning of both symbols was the same: We are saved from sin and transformed into new creatures in Christ Jesus only as we freely and gladly receive from him the
benefits of his passion and
death on the cross for our redemption.
Physicians should consider discontinuing drugs that may be effective and otherwise appropriate, but whose potential harms outweigh the
benefits that patients can reasonably expect
before death occurs.»
If you are the beneficiary, the
death benefits remain payable indefinitely provided the owner did not allow the policy to lapse, or cash it in
before he or she passed away.
Even
before you claim the
death benefit, you'll need to prove that the insurer has actually died.
In case of
death before retirement, your policy will pay a
benefit to the beneficiary — in most cases, the spouse or children.
Finally, if you die
before the loan is paid back, the loan amount will be deducted from the
death benefit your beneficiaries receive.
It provides a
death benefit for your spouse to retire on if you pass away
before saving enough for a comfortable retirement or to help bridge that gap of the loss of Social Security
benefits.
Outstanding loans and withdrawals, however, will reduce policy cash values and the
death benefit, and may have tax consequences, so talk with your agent about the pros and cons
before taking a loan out on your policy.
If you die
before it is repaid, the carrier will reduce the
death benefit your beneficiaries receive by that unpaid amount.
They are the insured, so if they die
before they pay back the loan, the
death benefit goes to Jack.
If you die with an outstanding loan, any amount still owed, plus interest, will be taken from your
death benefit before your beneficiary receives the remainder.
These riders let you use your
death benefit before you die, in certain cases of terminal illness.