Principal, LifeNet Insurance Solutions, Redmond, WA
Life insurance proceeds are generally paid out immediately upon death of the insured. In some cases depending on the needs of the beneficiary, the funds may be paid out as an income for life or in some other method. If the proceeds are governed by a trust or some other legal entity, then the proceeds would be paid into the trust and distributed as instructed.
The life insurance company, after being presented with proof of death and approving the claim form pays the death benefit.
The death benefit includes the face amount of the policy, plus any dividends, plus any term riders less any loans. In addition if the death the was accidental and the policy included an accidental death benefits and addition sum would be paid.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
The amount of money paid out to the policy's beneficiary is equal to the face amount cited in the policy (for permanent programs, less any outstanding loans or interest charges).
The carrier will pay the proceeds when a claim is made - a copy of the death certificate of the insured and a completed claim form will need to be submitted to the carrier. Once the paperwork is processed, the funds will be paid to the beneficiary.
Great question! Let's say you bought a $10,000 life insurance policy .The amount of the insurance policy that you purchased has a "face value" or "death benefit" of $10,000. Assuming that you had made up to date payments, and never borrowed from the policy, your beneficiary should receive a check for $10,000 after all the paperwork has been filed. If you had borrowed $500, let's say, and the interest on it was $100, then your check would be for $9,400. If you have more questions, please feel free to contact me, I'm happy to help! Thanks for asking!
Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
If an insured dies, then a "permanent" life insurance policy will pay the named beneficiary the face amount of the policy, minus any outstanding loan balance that there may be. In the case where a "term life policy" is in force, then there would not be any outstanding loan balance since there is no cash value in a term policy. In that case, the face amount would be paid to the beneficiary.
You determine how much your life insurance will pay out, when you buy the policy. At that time, you will choose the "death benefit", also called "face amount". This is the amount your beneficiary would receive if you were to die within the time frame of the policy. If you bought 10 year term, the policy would only pay out the face amount if you died within the first 10 years. If you buy permanent insurance, it should pay out upon death at any age, but be sure you understand the guarantees so you know that before you buy.
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The death benefit includes the face amount of the policy, plus any dividends, plus any term riders less any loans. In addition if the death the was accidental and the policy included an accidental death benefits and addition sum would be paid.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
The carrier will pay the proceeds when a claim is made - a copy of the death certificate of the insured and a completed claim form will need to be submitted to the carrier. Once the paperwork is processed, the funds will be paid to the beneficiary.