When Someone Passes: Claiming Death Benefits made Simple
PrintDescription: If you are a life insurance policyholder, this article is for you; if you are not, it will help you inform your beneficiaries about all the details and steps involved in claiming the life insurance payout. Be prepared by understanding your options.
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To start with, as soon as the funeral is over, the beneficiary should file an insurance claim by submitting the death certificate of the policyholder. For this, ask for the help of the insurance agent through whom the policy was purchased. Once your claim has been filed and is approved of, the life insurance company will question you on how you want to get the claim amount.
There are two major payout choices.
1. The first option is lump sum; nearly every term life insurance policy permits you to pull out the full claim amount in just one stroke. The majority of beneficiaries choose this payment method if there are urgent monetary obligations like mortgage payments or a pressing need for the full amount. A few beneficiaries decide to pull out the full amount, and subsequently invest in tax-deferred saving plans.
2. For individuals who do not want the claim amount in a lump sum, life insurance companies provide different kinds of annuity payment alternatives. These include:
• Life income plan
The beneficiary is assured of an annual income providing he or she survives. However, if the beneficiary dies, the insurance company keeps the balance amount.
• Life income with a preset term plan
The beneficiary is assured a yearly income for life, or a specific term, whichever is longer. If the beneficiary dies earlier than the specific term, a second beneficiary gets the remaining payout.
• Last survivor income plan
If there is more than one beneficiary, payout will be made until the last surviving beneficiary expires.
• Specific income plan
The beneficiary gets to decide on the amount and the years death benefits will last. If the beneficiary expires earlier than the last payment, a second beneficiary gets the outstanding payments.
• Interest income plan
This is the best choice for minor beneficiaries. The beneficiary is assured of interest paid on the claim amount for a specific period, or until the beneficiary attains a set age. The real benefit is passed on to the beneficiary after that.
About the Author:
Carol is an expert in the field of getting the best deals for cheap life insurance. To obtain cheap life cover and life insurance quotes, it is be easy with the right portal. As a person who has been an insurance agent for a long time, Carol wants to share her experiences with anyone who is looking for life insurance. For more information, please visit www.einsured.co.uk. Article Source: Eulogy Site - http://EulogySite.com