Sentences with phrase «not pay the death benefit to your beneficiary»

Not exact matches

In the event you pass, the cash value is not paid to your beneficiary like the death benefit would be.

If you die, but not because of an accident (e.g. cancer), within the first two years, the death benefit will not be paid out, however, all your paid premiums plus a little interest will be paid to your beneficiaries.

If you pass away during this period of time, the insurer wouldn't pay the full death benefit to your beneficiary.

If you haven't been keeping up with your insurance premiums, your insurer will not pay out the death benefit to your beneficiaries when you die, rendering the whole thing useless.

Liberty Bankers can not be responsible for tax consequences caused by incorrect beneficiary designations: death benefits will be paid to the beneficiary on record as of the date of the annuitant's death.

Not only does it give the beneficiary an opportunity to pay expenses, the death benefit is tax - free in most cases.

There are certain instances where this is not the case, but the typical life insurance policy arrangement will have the death benefit paid to the beneficiary tax free.

Back in the day, any form of flying was considered extremely hazardous and most life insurance companies would either force the applicant to pay an exorbitant amount or they would add an aviation exclusion clause to the policy, in other words, if you died as the result of a plane crash, your beneficiaries wouldn't receive the death benefit.

The repayments that you then make to your life insurance policy will usually have a low rate of interest — and, if you do not end up paying back these funds, the amount of the unpaid balance will be deducted from the death benefit that your beneficiary receives.

Life insurance is not taxable regarding the proceeds paid to your beneficiary from the death benefit.

For life insurance policies that pay death benefits in the form of a lifetime payout, the portion of the payout that is not subject to tax if the policy has no refund provision or stated time period guarantee which is determined by dividing the amount of the death benefit by the life expectancy of the beneficiary.

Therefore, if you don't have a named life insurance beneficiary, or they're deceased, your family may never receive the death benefit you paid to have in place.

With the cash refund payout option (also known as the death benefit), you are guaranteed that any principal (premium paid into the contract) not yet returned through income payments will be returned to your beneficiary upon your passing.

Paying back these loans is optional; however, any portion of the loan that is not repaid at the time of the insured's death will decrease the amount of death benefit proceeds that are paid out to the beneficiary.

Usually the death benefit isn't paid out to your beneficiaries until after you die.

The IUL death Benefit pays out, and pays out more than your bucket of investment has grown to, wow, its was front loaded, there were fees to limited your risk, and in the end the beneficiary not only got the cash value, but some added death benefBenefit pays out, and pays out more than your bucket of investment has grown to, wow, its was front loaded, there were fees to limited your risk, and in the end the beneficiary not only got the cash value, but some added death benefitbenefit too.

It's important to note if you take out a loan on your whole life insurance policy and die while the loan is out, the death benefit may be used to pay back the outstanding amount, meaning your beneficiaries won't get the full amount.

That means your beneficiary will not have to pay income taxes on the death benefit payout.

If your beneficiaries don't know about the policy, they won't know to claim the death benefit you've been paying for all this time, and having easy access to the policy will help them claim the payout as soon as possible.

Should you die while the policy is in force, your beneficiaries will receive not only your the initial face value as a death benefit, but also it's common for dividends to buy additional insurance by way of what are called «paid up additions», so the death benefit could actually be higher than the face value at the purchase of the policy.

This means that if you pass away during the graded (or waiting) period, the insurance carrier will not pay out any death benefit to your beneficiary.

Once an accelerated death benefit has been paid, the election to request such accelerated death benefit can not be revoked.Consent of an assignee or irrevocable policy beneficiary may be required.

However, it is important to note that any amount of the balance that is not repaid will be charged against the death benefit proceeds that are ultimately paid out to the beneficiary upon death.

(Note: The cash value of a policy is not the same as the face amount that's paid out as a death benefit to your beneficiaries.

It is important to note, however, that even though a withdrawal or a loan is not required to be paid back, if there is an unpaid balance in the cash - value component of the policy at the time of the insured's death, then the amount of that balance will be charged against the death benefit that is paid out to the policy's beneficiary.

If you don't repay the loan plus interest, the amount will simply be deducted from the death benefit paid to your beneficiaries upon your death.

If long term care is not needed, a life insurance death benefit is paid to your beneficiary.

For starters, any money you borrow and do not pay back will be deducted from the death benefit eventually paid to your beneficiaries.

Liberty Bankers can not be responsible for tax consequences once death benefits are paid to the beneficiary on record as of the date of the annuitant's death.

It's important to note if you take out a loan on your whole life insurance policy and die while the loan is out, the death benefit may be used to pay back the outstanding amount, meaning your beneficiaries won't get the full amount.

It's important to note that the money you borrow and don't pay back (including the interest accrued) will be deducted from your death benefit when you die, which means your beneficiary (s) will receive less.

If your beneficiaries don't know about the policy, they won't know to claim the death benefit you've been paying for all this time, and having easy access to the policy will help them claim the payout as soon as possible.

Essentially, if the insured were to die in the first few years of the policy, the policy's beneficiary would receive all the premiums that were paid, plus earned interest, but the beneficiary would not receive the policy's death benefit until the waiting period has ended.

When a beneficiary dies before you do, your policy's death benefit gets paid out to her estate, where it could be held up in court or disbursed among relatives you don't know or don't like.

And, in an absolute worst - case scenario, your death benefit — the amount of money a policy pays to the beneficiary if you die — won't get paid out.

Usually the death benefit isn't paid out to your beneficiaries until after you die.

If the chosen Benefit Payment Preference is Save - n - Gain under any of the plan option, in case of death or critical illness suffered by the insured during the tenure of the plan, the Sum Assured is paid to the beneficiary who is the child, all future premiums are waived off and 50 % of the premiums are paid by the company towards the plan and 50 % to the beneficiary on every premium due date and the plan continues.

Policyowners who choose to go this route believe that it's worth it since they know they don't have much time left to live and are willing to pay absurdly high prices to make sure their beneficiaries receive the death benefit, which in this example would be $ 500,000.

The money in your fixed annuity, which you invest as a lump sum, earns a guaranteed fixed rate of interest.2, 3 Fixed deferred annuities are not subject to the ups and downs of the stock market and you don't pay taxes on your earnings until you withdraw them.4 With a fixed deferred annuity, you will also receive protection for your beneficiaries through a guaranteed death benefit.2

The money in your annuity, which you invest as a lump sum, earns a guaranteed fixed rate of interest.2 Fixed deferred annuities are not subject to the ups and downs of the stock market and you don't pay taxes on your earnings until you withdraw them.3 With a fixed deferred annuity, you will also receive protection for your beneficiaries through a guaranteed death benefit.1

If any loans amounts are outstanding — i.e., not yet paid back — upon the insured's death, the insurer subtracts those amounts from the policy's face value / death benefit and pays the remainder to the policy's beneficiary.

Meanwhile, the insurance company, while collecting your premium, will not have to worry about paying your beneficiaries death benefits if you die outside of term life insurance coverage or during a period of policy lapse.

Paying back these loans is optional; however, any portion of the loan that is not repaid at the time of the insured's death will decrease the amount of death benefit proceeds that are paid out to the beneficiary.

Back in the day, any form of flying was considered extremely hazardous and most life insurance companies would either force the applicant to pay an exorbitant amount or they would add an aviation exclusion clause to the policy, in other words, if you died as the result of a plane crash, your beneficiaries wouldn't receive the death benefit.

While the funds that are borrowed from a permanent life insurance policy do not typically have to be repaid, if they are not, the shortfall — plus interest — will be charged against the amount of the death benefit that is ultimately paid out to the policy's beneficiary.

If the premiums are paid as required, the policy will not expire and death benefits will be paid out to the beneficiary.

This means that the insurer has a restriction where they will not pay out death benefits to a beneficiary if you were to die in the first 2 years when the policy comes into effect.

It's important to note, the death must be as a result of an accident, or it will not pay any benefits to your beneficiaries.

Generally, life insurance death benefits that are paid out to a beneficiary in lump sum are not included as income to the recipient of the life insurance payout.

Even though the beneficiaries of a life insurance policy may not have to pay taxes on a death benefit, they may pay taxes on the estate left to them.