How to use Death benefit in a sentence
Annuities are contracts issued by life insurance companies, and many provide a guaranteed death benefit for a spouse or beneficiary.
You have the option of choosing between a level benefit or a graded death benefit.
Sometimes seniors who already have life insurance choose to take an additional policy if the death benefit payout of their original policy is low and not enough to pay for funeral, cremation or burial expenses.
However, if the insured lives beyond the term of the insurance policy, there is not any death benefit paid.
If the insured person dies during the time when the insurance policy is in effect, the insurance company pays the amount of the death benefit to the beneficiary of the policy.Advertisement
The death benefit on a term life insurance policy is fixed, which means it is the same amount regardless of when the person dies within the term of the insurance policy.
In terms of money, it means the insurance company has more of a risk of having to pay the death benefit on a senior’s term life insurance policy than they do on a younger person’s policy.
The death-benefit limit of $250,000 does not take into account instances in which prolonged hospitalization preceded death.
The death-benefit limit does not take into account an adult, family wage earner with a vaccine-related injury or death resulting from exposure to a newly-vaccinated child.
It covers 80 percent of medical expenses, 60 percent for replacement household expenses and a death benefit.Advertisement
In the case of endowment and whole life insurance policies, the beneficiary receives a death benefit if the insured is injured and dies.
As the insured person, you can borrow against this cash value for any reason, but loans against the policy reduce the death benefit amount.
If long term care becomes a necessity for a person with an acceleration rider, the money received to help pay for services is an advance on the death benefit due when the person dies.
It's called an acceleration rider because it accelerates payment of the insurance policy's death benefit.
If long term care is provided for a long enough period, the death benefit can be depleted.Advertisement
While doing your research as to which type of long term care will be best for you, it's a good idea to talk with a tax adviser because accelerating the death benefit may have unfavorable tax consequences.
Find out if interest will be charged if the death benefit is employed.
Some riders permit the insured to draw money to cover long term care expenses even after the death benefit amount is depleted.
Many times, the death benefit your loved ones receives is income-tax free.
Permanent life insurance helps take care of you while you're still alive, while the death benefit sees to it that your loved ones are cared for in the event of your death.Advertisement
A term life insurance policy has no returns or cash value beyond its stated death benefit.
Whole life insurance - Also called permanent insurance, this type of life insurance pays out a death benefit whenever you die - regardless of when you die.
If they were, the death benefit will be paid.
If the policy lapsed, then the company either takes the cash value of the policy to buy the longest term policy the cash value can buy, or the company will simply keep the policy active but reduce the death benefit.
Whole life policies pay a death benefit no matter when you die, while term life policies pay a death benefit only during the term, which can range from one year to thirty years.Advertisement
Your premiums may change and your return on investment and death benefit may change depending on how your investments perform, but usually can't drop below a pre-determined level.
This is the death benefit that will be paid out to your beneficiaries when you die.
The accidental death benefit offered by Tesco reimburses the pet owner for the original cost of the pet, up to a set limit.
Also, this type of annuity allows the beneficiary of the investor to receive a death benefit that is guaranteed to be equal to the amount of premiums that the investor paid, up until the time of death.
This type of annuity also pays out a death benefit to the plan member's beneficiaries.Advertisement
The annuity pays a death benefit to the plan's beneficiary.
There is no term on it; provided you pay the premiums on time, the policy will pay a death benefit to your heirs, no matter how long you live.
It features a guaranteed level premium that never increases, and a level death benefit.
As you pay premiums into the policy, the insurance company sets a cash reserve aside to offset the expected death benefit.
Therefore, the death benefit can grow over time to keep up with inflation.Advertisement
The advantage of whole life is in its guarantees, and in the favorable tax treatment of dividends and the death benefit.
This allows you to purchase a higher death benefit for less money, and may be an excellent fit for young families on a budget.
If you live to life expectancy, you can easily pay more in premiums than your family ever gets in a death benefit.