Sentences with phrase «policy death benefit paid»

However, if the insured dies within 2 years of purchasing the life insurance policy the death benefit paid will only be the amount of premium paid plus any interest on that premium.

You typically have two options when deciding how you want the policy death benefit paid to your beneficiary:

Not exact matches

When it is time for either college or retirement, the policy holder can borrow money from the cash value and pay it back with the death benefit when they die.

Such policies also pay out a death benefit to your heirs when you die, but they are far more expensive than term life.

These insurance policies are less pricey than traditional life insurance, since they pay benefits only after the death of both husband and wife.

(The rest of the money you've spent goes to pay for the policy's death benefit.)

The value and cost of these policies depend on several factors: how the buyer chooses to pay premiums, how the market plays out and how the insurer calculates the death benefit.

The downside to paid - up whole life insurance policies is that each premium payment is also deducted from the policy's death benefit.

Buying paid - up additions is similar to buying a small single - premium life insurance policy as you increase the policy's cash value and death benefit but don't have ongoing payments.

However, the policy only pays a death benefit if you die due to a covered accident, such as a plane crash or sudden fall.

Permanent insurance, which includes whole life and universal insurance policies, is for life: It provides a death benefit for as long as you pay the premium, but also may include cash value that can be accessed during the insured person's lifetime.1

In addition, some mortgage protection policies will only pay a death benefit if you die from an accident, similar to accidental death insurance.

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.

Survivorship Builder is a single policy covering two lives that pays the death benefit upon the second insured's death — an option that might prove beneficial to some, such as, providing an income tax free death benefit, liquidity for estate taxes and wealth transfer and supplemental income needs.

With a guaranteed issue life insurance policy, if you die because of an accident (e.g. a car crash) within the first two years, the full death benefit will be paid to your beneficiaries.

The policy does not guarantee that the death benefit will be sufficient to pay for any particular goods or services, nor that those goods or services will be provided by any particular provider.

The policy's death benefit will be paid to your designated beneficiaries.

When a death benefit is paid depends on the structure of the policy:

The taxable amount would be the the death benefit minus the value of whatever was paid to you, as well as any amount paid in premiums since they acquired the policy.

If you are diagnosed with an illness after purchasing coverage, the insurer will pay you a portion of the policy's death benefit.

When you purchase term life insurance, you agree to pay recurring premiums in return for the commitment by the insurance company to pay a death benefit if the insured happens to die during the term that the insurance policy is in effect.

As the names imply, decreasing term policies pay a lower death benefit over time, while level term policies maintain the same death benefit for the term of the coverage.

However, when a shareholder dies and the death benefit is paid to a C corporation, the corporation's exposure to the alternative minimum tax (AMT) is increased to the extent that the death benefit exceeds the corporation's basis in the policy.

Mr Osborne told the party faithful in 2007 when he announced the policy that the inheritance tax change would benefit nine million families and ensure «only millionaires pay death duties».

If the applicant was not healthy enough to meet the underwriting criteria then the policy would be declined, and no death benefit paid.

On the other hand, whole life policies do not expire if the premiums are paid and thus the death benefit will be paid eventually provided the policy remains in force.

If you are diagnosed with an illness after purchasing coverage, the insurer will pay you a portion of the policy's death benefit.

If you have a life insurance policy, and you've been keeping up with your premiums, your insurer will pay out a death benefit when you die.

In case of death before retirement, your policy will pay a benefit to the beneficiary — in most cases, the spouse or children.

The last reason an insurance company might not pay out the death benefit is if you commit suicide within the first two years of taking out the life insurance policy.

However, the death benefit and cash value can continue to grow with participating policies since the dividend can be applied to purchase additional paid - up life insurance coverage.

If you die as the direct result of a vehicular, air, or sea accident that you did not deliberately cause, your insurer will pay your beneficiary the accidental death benefit, which is normally twice the value of your insurance policy's face value.

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.

The downside to paid - up whole life insurance policies is that each premium payment is also deducted from the policy's death benefit.

As an added benefit, the life insurance death benefit of the new hybrid policy would pay off her mortgage if she passed away, assuming she didn't use the policy for long - term care.

On the other hand, as long as premiums are paid, a permanent life insurance policy will always pay out a death benefit since it never expires.

You might choose a decreasing term policy for a similar term length and initial death benefit equal to the outstanding mortgage loan, since you know your spouse will be financially stable once the mortgage is paid off and you know the time it will take to pay back the loan.

The Rider Sum Assured in addition to the Death Benefit under the Base Policy will be paid to the nominee and the rider will cease to exist.

You pay a flat premium over the duration of the policy, but the face value (death benefit) of the policy decreases over time.

Buying paid - up additions is similar to buying a small single - premium life insurance policy as you increase the policy's cash value and death benefit but don't have ongoing payments.

However, since you are no longer the owner of the policy, you won't receive a tax credit when the death benefit is eventually paid.

If the insured dies within this term (10, 15, 20, 25, 30, or 35 years), the life insurance company pays a lump sum death benefit to the policy's beneficiaries.

A return of premium life insurance policy is one where, minus very negligible fees, your premium payments are refunded to you at the end of the term (assuming the death benefit hasn't been paid out, of course).

Bharti AXA Life Accidental Death Benefit Rider (UIN: 130B008V01): This is a non-linked and regular pay rider that provides 100 % Sum Assured in case of death of the Life Insured due to an accident subject to the rider policy being in fDeath Benefit Rider (UIN: 130B008V01): This is a non-linked and regular pay rider that provides 100 % Sum Assured in case of death of the Life Insured due to an accident subject to the rider policy being in fdeath of the Life Insured due to an accident subject to the rider policy being in force.

If the insured dies while receiving total disability benefits, the policy pays the basic monthly benefit to the owner or owner's estate for up to three months after the insured's death.

In case of occurrence of any of listed Critical illness, the Benefit (as chosen during inception) will be payable to you as a lump sum amount, irrespective of the death benefit payout option chosen, subject to policy being in force and all due premiums have beeBenefit (as chosen during inception) will be payable to you as a lump sum amount, irrespective of the death benefit payout option chosen, subject to policy being in force and all due premiums have beebenefit payout option chosen, subject to policy being in force and all due premiums have been paid.

Life insurance policies have a variety of tax benefits, such as the death benefit paid to beneficiaries being free of income tax.

This Non guaranteed benefit (as percentage of Sum Assured on Maturity) is paid out as a cash bonus every year starting from the 6th Policy year, until maturity or death, whichever is earlier.

Another reason to pay back the policy loan is that the total outstanding balance would be deducted from the death benefit your beneficiaries received if you passed away.

You can change the death benefits during the life of the policy, usually after passing a medical examination, and you can pay premiums from your accumulated cash value.