Life Insurance Information Components Death benefit

Death benefit payment options

Tweet

You have more than one option available to you in how a life insurance death benefit is paid to policy beneficiaries.

Lump sum

This is the simplest of the death benefit payments.  The entire death benefit is bestowed at once, in a single payment.

Interest

With this settlement, the insurance company retains the death benefit but periodically pays the beneficiary interest on it.  Optionally, the beneficiary can take part of the death benefit and leave the rest with the insurance company for interest.

Fixed period

The life insurance company makes regular payments of a portion of the death benefit, plus interest, until the end of the period, at which time the death benefit shall have been paid out in entirety.  The interest rate is set at the time of death.

Fixed amount

The life insurance company makes payments of a particular amount, at a particular period.  Meanwhile, the death benefit accrues interest.  Payments continue until the death benefit (plus its interest) is exhausted.

Life income

The death benefit purchases a life annuity for the beneficiary or beneficiaries.  That is, a steady income stream is created for each beneficiary, to continue until the beneficiary dies.  The size of the payments depends on the gender and age of each beneficiary.

A few of the carriers we quote

For assistance call 1-800-823-4852 7am–6pm M–Th, 8am–5pm Friday (Pacific time).
Copyright © 2002-2012 Pinney Wholesale Insurance Services - All rights reserved. 2266 Lava Ridge Court, Roseville CA 95661.

R. Jan Pinney CLU, ChFC, is a licensed life insurance agent in all states and the District of Columbia. The following agent license numbers are provided for R. Jan Pinney as required by state law: CA agent #0440057, LA agent #291116, MA agent #1674866, MN agent #20270113, UT agent #58330, agent R. Jan Pinney, DBA Pinney Wholesale Insurance Services. Commercial use by others is prohibited by law. This site provides term quotes. Each rate shown is a quote based on information provided by the carrier. No portion of WholesaleInsurance.net may be copied, published, faxed, mailed or distributed in any manner for any purpose without prior written authorization of the owner.