A shocking number are
dying with unpaid mortgages, car loans, student loans and credit cards.
Existing debt If
you die with unpaid debt, your survivors may be on the hook for all or part of it.
If you are a businessman and if you were to
die with unpaid loans and debts, do you know that the creditors can sell off your land, house, shares, mutual funds, bank FD, cars, jewelry, etc. and it is they (and not your spouse or children) who will have the first right on the money received?
If you are a businessman (especially with a proprietorship or unlimited partnership) and if you were to
die with unpaid loans and debts, do you know that the creditors (and not your spouse or children) can sell off your land, house, shares, mutual funds, bank FD, cars, jewelry, etc. and will have the first right on the money received?
Policy loans may or may not have to be repaid, but in all cases, the unpaid balance of the loan will be deducted from the death benefit if
you die with an unpaid balance.
Not exact matches
In the event that you
die with policy loans outstanding, your insurance company will deduct the
unpaid amount plus any accumulated interest from your death benefit.
The kind of broke when businesses and economies slump, dragging incomes down
with them, when babies are born without insurance and ginormous hospital bills go
unpaid for far too long and interest heaps on, when businesses
die and new jobs can't be found, when mortgages can only be covered by the good grace of family members, and when food is bought on credit or gift cards from kind friends.
Just like
with other types of permanent life insurance policies, cash can be withdrawn or borrowed from the policy, however, an
unpaid balance will be charged against the death benefit should the insured
die prior to the money being repaid.
The new child death leave expands upon the entitlement of the former crime - related child death or disappearance leave and will provide employees
with an entitlement of up to 104 weeks of
unpaid leave if a child of an employee
dies for any reason.
Funeral costs, hospice care,
unpaid debts and medical bills are just some of the expenses your family may be left
with if you do not have a life insurance policy in place when you
die.
So if your mom runs up a lot of debt in the last years of her life and
dies with the debt
unpaid, you are not accountable for that debt.
Just like
with other types of permanent life insurance policies, cash can be withdrawn or borrowed from the policy, however, an
unpaid balance will be charged against the death benefit should the insured
die prior to the money being repaid.