Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
The death benefit of a life insurance policy does not have a deductible. The proceeds will be somewhat different from the face amount. The policy could have an outstanding loan and that amount would be deducted. There might be additions that would increase the death benefit. There might be unearned premium and there is almost always a delay and the company is obliged to pay interest on the money until it is issued in check form.
The amount that is paid to a patient by their health insurance policy depends on the cost of the care they received while sick. If the patient is willing to pay a large deductible, the insurance policy does not have to pay out as much. This, in turn, lowers their policy premium.
The death benefit of a life insurance policy is not dependent on the expenses surrounding the death of the insured. The policy owner selects the face amount, and that is what is paid to their beneficiary. If they want to pay less premium, they simply choose a smaller face amount.
Living Debt Free & Truly Wealthy, The found money specialist, United States
Life insurance does not have a deductible, how ever you should look at your deductibles to see where you can save money to increase you savings. If you have home owners insurance Look at the difference of having a low deductible and a high deductible. You will be shocked at how much money you can save.
Now this works with someone who hasn't used their deductible in years.
The question I have for you, Is that money better off in my pocket or the insurance company?
Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
No. Life insurance does not have deductibles. When the insured individual dies, the insurance company pays out the face amount of the coverage to the beneficiary of the policy.
Please note, if you have a permanent insurance program and the policyowner borrowed funds from the policy (creating a loan) and did not pay it back when the insured dies, the outstanding loan amount and any interest would be deducted from the payout and the difference would go to the beneficiary.
I hope the information is helpful - please feel free to contact me for help with your program and if you have any other questions. Thanks very much.
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The death benefit of a life insurance policy is not dependent on the expenses surrounding the death of the insured. The policy owner selects the face amount, and that is what is paid to their beneficiary. If they want to pay less premium, they simply choose a smaller face amount.
Now this works with someone who hasn't used their deductible in years.
The question I have for you, Is that money better off in my pocket or the insurance company?
Please note, if you have a permanent insurance program and the policyowner borrowed funds from the policy (creating a loan) and did not pay it back when the insured dies, the outstanding loan amount and any interest would be deducted from the payout and the difference would go to the beneficiary.
I hope the information is helpful - please feel free to contact me for help with your program and if you have any other questions. Thanks very much.