Sentences with phrase «death benefit on the policy»
An existing life insurance policy can be used to satisfy the lenders requirements as long as the amount of death benefit on the policy is enough to cover the loan amount required.
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The minimum amount of death benefit on this policy is $ 100,000, and proceeds may be applied for up to $ 65 million.
Should the insured pass away any time after two years have elapsed, the beneficiary would receive 100 percent of the amount of the stated death benefit on the policy.
The lowered rates are based on the fact that Protective Life is not bound to pay a lump sum death benefit on those policies.
If the insured on the policy passes away during the time that the policy is in force, the insurance company will pay out the stated amount of death benefit on the policy to the named beneficiary.
Yet, if the insured does not ever need this benefit, they will still maintain the protection of the death benefit on the policy, along with the cash growth.
In some of these scenarios, the death benefit on the policy may be taxable.
You must apply for an additional policy to increase the Death Benefit on the policy.
Therefore, it is important to ask the insurance provider whether the death benefits on the policy will be «graded.»
If the loan has been taken out using a collateral assignment of the life insurance policy when the loan is repaid in full and if the person insured on the policy is still living, then the lender relinquishes all rights to any death benefit on the policy and they will return all documents.
If, however, the insured has had the policy for at least a certain number of years and then he or she dies, then the full amount of the stated death benefit on the policy will be paid out to the beneficiary.
In the level benefits policy, the full amount of the death benefit on the policy is usually paid out if the insured passes away at any point after the policy has been issued.
Some might even require two years to go by before they would be willing to pay out a death benefit on your policy.
In other words, the death benefit on the policy is designed to go down over time along with your mortgage balance.
The risk of paying the death benefit on a policy for a smoker, as opposed to a similar person who does not smoke cigarettes, is significantly higher.
An accidental death benefit rider allows you to increase the death benefit on your policy in case you die as a result of an accident or injury (typically you must die within 90 days of the accident or injury to qualify).
This means that even after the insured has passed away, the total amount of premium that he or she paid into the policy over time — combined with such funds» invested return — will be more than what the insurer will pay out in the form of a death benefit on the policy, resulting in a profit to the insurance company.
For instance, the death benefit on some policies is only payable if the insured dies after premiums have been paid for 24 months.
During the time that is chosen, the death benefit on the policy remains level, and the amount of the premium will not increase.
There are also several different ways in which the death benefit on this policy is structured.
If you now no longer want that person receiving the death benefit on your policy, changing your policy beneficiary is simple enough; whichever company you purchased life insurance through can help you with that.
The spouse who is financially dependent on the other will then receive the death benefit on that policy when their spouse dies.
It also offers the flexibility in selecting the level of premium that is paid into the contract, as well as the flexibility of decreasing or increasing the death benefit on the policy (subject to certain limitations).
Yet, if the insured does not ever need this benefit, they will still maintain the protection of the death benefit on the policy, along with the cash growth.
One basic rule of thumb is that the death benefit on your policy should equal seven to 10 times the amount of your annual salary.
Further, many companies allow the cash value account to be drawn from to pay for the premiums, although this will ultimately reduce the death benefit on the policy.
Plus, you give up the death benefits on the policy once you take the cash.
But now that your kid is heading off to college, you might want to lower the death benefit on your policy to save on premiums.
You should expect that there will be a more detailed exam the higher the death benefit on the policy you are applying for will be.
If you should die during those twenty years, your insurance company would pay out a death benefit on your policy to the person or persons you choose as beneficiary of your insurance.
1) Look at reducing the Face Value (Death Benefit on this policy).
The death benefit on the policies would equal the to interest each partner or principal has in the organization.