Death Benefit

Death Benefit It is the amount of money your insurer will pay out to your beneficiaries if you die during the policy's term. A death benefit is the primary reason someone purchases a life insurance policy; It is the amount that is paid to the nominee in case of death of the life assured during the policy period. It is payout to the beneficiary of a life insurance policy, annuity, or pension when the insured or annuitant dies. This predetermined amount of money typically is tax-free and can be paid out all at once or in payments over time. The cost of your policy is determined by factors like your age, medical history, policy type, and the face amount you select. The greater the face amount, the higher your premium. Remember, death benefit and sum assured are no similar terms. This is because the death benefit can be equal or higher than the sum assured as it can include the rider benefit as well. If an estate exists, the executor named in the will or the administrator named by the Court to administer the estate applies for the death benefit. The executor should apply for the benefit within deadline stipulated by the law of the jurisdiction as from the date of death. The Insurer makes this payment as soon as possible after the client's passes away. Beneficiaries must submit proof of death and proof of the deceased's coverage to the insurer. To qualify for the death benefit, the deceased must have made contributions to the insurer to a certain amount of months or years as stipulated in the terms and conditions of the policy or as stated by the law of that jurisdiction. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful