FAQs

Life Insurance

10 Jan 2019

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A death benefit is a payout to the beneficiary of a life insurance policy, annuity or pension when the insured or annuitant dies. A death benefit may be a percentage of the annuitant's pension. For example, a beneficiary might be entitled to 65 percent of the annuitant's monthly pension at the time the annuitant dies. Alternatively, a death benefit may be a large lump-sum payment from a life insurance policy. The size and structure of a pension or life insurance policy's payment also known as a survivor benefit are determined by the type of contract the annuitant held at the time of death.

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