Death Benefit

Death Benefit A death benefit is a payout to the beneficiary of a life insurance policy, annuity, or pension when the insured or annuitant dies. It is the primary reason someone purchases a life insurance policy; it's the amount of money your insurer will pay out to your beneficiaries if you die during the policy's term For life insurance policies, death benefits are not subject to income tax and named beneficiaries ordinarily receive the death benefit as a lump-sum payment. Beneficiary needs to be specifically designated in the life insurance policy. There can be more than one beneficiary and in practice, there often is a beneficiary does not have to be a person it can also be an entity such as a charity, family trust, or even a business Beneficiaries must submit to the insurer proof of death and proof of the deceased's coverage. 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 a deadline after the date of death as stipulated by the law. Some of the reasons you may wish to take a death benefit; *You want to leave money to care for other family members, such as parents or a sibling *You could leave money to a family run business to help ensure continuity of operations after you’re gone *You decide to leave money to your grandchildren (instead of your children) as part of your tax strategy #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful