Sentences with phrase «paying the death benefit to beneficiaries over»

The cost of insurance for the renewable term element inside a universal life insurance policy can be high in later years, but some companies reduce the cost of insurance by paying the death benefit to beneficiaries over an extended period of 30 years.

Not exact matches

The main difference between term life and permanent insurance is that term insurance only pays death benefits to your beneficiaries, while permanent life insurance pays out death benefits and accumulates cash value which will continue to build up over the life of the policy.

The policy will still pay out a death benefit to your beneficiaries when you die, but over time this death benefit is gradually replaced by the cash value.

Accordingly, a QLAC may provide for a single - sum death benefit paid to a beneficiary in an amount equal to the excess of the premium payments made with respect to the QLAC over the payments made to the employee under the QLAC.

The goal of the IPO rider is to pay out the death benefit over a longer period of time to protect the beneficiary from the typical lump sum, which essentially amounts to a «blank check».

The policy will still pay out a death benefit to your beneficiaries when you die, but over time this death benefit is gradually replaced by the cash value.

In fact, you are usually required to keep paying but the amount paid over the benefit amount will be paid to your beneficiary upon your death.

Variable Annuities - A High - Level Primer A variable annuity is a tax - deferred financial product that pays benefits to the annuitant over a specified number of years and a death benefit to the annuitant's beneficiaries.

Whole life insurance pays out a death benefit to the beneficiary when you die and accumulates cash value over time.

Annuity beneficiaries may choose to have their portion of the death benefit proceeds paid out over the course of five years.

As a form of permanent coverage, universal life policies provide a guaranteed tax - free death benefit to policyholder beneficiaries based on the amount of premiums paid over time.

If they set up a trust to hold a life insurance policy, the money can be used to pay any estate taxes that come due when they die, and money left over can flow to the beneficiaries outside the estate as a nontaxable death benefit.

Using the fixed amount settlement option, the death benefit proceeds will be given out in a fixed amount over time until both the principal and the interest have been totally paid out to the beneficiary.

Any amount left over is paid out as a death benefit to the named beneficiaries when the policyholder passes away.

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With an annuity, the insurer will pay the balance of your policy's death benefit over time, allowing them to continue to earn interest on the remaining money they owe your beneficiaries.

If you don't die, the policy goes away once the term is over — you don't have to pay your premiums anymore, but your beneficiaries are also no longer going to get a death benefit.

If you're still alive when that term is over, you don't have to pay your premiums anymore, but there will be no death benefit for your beneficiaries.