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Does an insurance policy given to you after the death of the insured have to be declared on a tax return?
Wiki User
∙ 11y ago
Normally, life insurance benefits are tax free, but you may want to consult with a tax specialist.
Wiki User
∙ 11y ago
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What is return of premium?
Return of premium life insurance is a type of term life insurance policy that returns the premiums paid for coverage if the insured party survives the policy's term.
What is the average return of premium life insurance?
Return-of-premium life insurance is like an ordinary life insurance policy, but payments made on premiums are returned to the insured individual if the policy ends and they are still alive. Thus, return-of-premium life insurance policies do not punish one for outliving their life insurance. The average such policy might cost 25% to 50% more in premiums, compared to an ordinary life insurance policy.
Can you phone somebody about a paid up policy?
If you know the identity of the insurance company or the insurance agent that sold it to the insured, you can call. However, if you are not the insured, they will want to know the reason for your call and your authority to call on the insured's behalf. If the insured has died and you have reason to believe that you were the beneficiary of the policy, ask the insurer to send you a life insurance claim form. You will have to supply information about yourself, the name of the insured, and the policy number. Fill out the claim form and return it to the insurer. It may have to investigate to determine whether you are the correct recipient of policy benefits.
Can you explain life insurance in very simple terms?
Very basically, insurance is a contract (called an insurance policy) between one party (the insurance company) and another (the insured). In the case of life insurance, it is a life that is being insured. In return for the periodic payment of money (called a premium) to the insurance company, the insurance company agrees to pay a sum of money when the insured (whose life is insured) dies. The money is generally paid to the person (or sometimes an entity, such as a charity) that is designated in the insurance policy as the beneficiary. The beneficiary is designated by the insured when the insured buys the insurance but can usually be changed up until the time of death.
What happens to the money that was put in term life insurance if it is terminated because of non payment?
If the policy lapses due to non-payment, the premiums that have been paid into it are not refunded to the insured unless there was a "return of premium" stipulation in the policy itself. There is no other way for the insured to recover these premiums.
If the insured cancels their own auto insurance policy how is the return premium calculated and is there a penalty?
If you cancel your policy is will probably be short-rated which means you will be penalized for canceling. There are published factors but I can't give you the short rate factor without knowing the dates of the policy.
What type of insurance is there?
There are a lot of different types of insurance. Real insurance is any insurance policy that offers you a certain type of coverage in return for premiums paid by the insured. Private insurance and government are both real insurance as long as benefits are being exchange for premiums whether paid by the government or a private party.
What does an insurance policy explain?
An insurance policy does not "explain" anything as such. Instead, it is a contract by which the insurance company assumes the financial risk of loss for certain occurrences from the insured in return for the payment of a premium. Part of the contract defines the scope of the risks that that the insurer is assuming; other parts define certain terms used in the insurance policy, and still other parts define what must occur or be done to trigger coverage. To that extent, the insurance policy is providing an explanation of its terms and conditions.
Is there an insurance company that will not pay out if i claim?
An insurance contract is an agreement between the insurer and the insured. By its terms, in return for the payment of a premium by the insured, the insurer agrees to pay on behalf of the insured, certain damages for which the injured may be legally liable. The insurer may have other obligations, too, such as to provide a defense (hire a lawyer and pay related expenses) on behalf of the insured. It is important to understand that both the insurer's and the insured's obligations are specified in the policy. Therefore, if there is an occurrence that falls outside of the undertakings of the contract, the policy will not provide coverage. An example of this is that an auto insurance policy does not provide coverage for damage to furniture caused by a house fire. Likewise, if the insured has not paid premiums as agreed and the policy lapsed before a covered occurrence happened, the insurer may properly deny coverage because the policy was not in force at the time of the occurrence. There are other circumstances under which an insurer may be within its rights not to pay. Just what those circumstances are depend upon the kind of insurance involved and the facts of the dispute.
What is the principle of life insurance?
The principle of life insurance is to provide financial protection for the individuals named as beneficiaries in the policy in the event of the insured person's death. The insured pays regular premiums to the insurance company, and in return, the company promises to pay out a predetermined amount of money to the beneficiaries upon the insured's death. It is a way to ensure that loved ones are financially protected and taken care of after the insured's passing.
What are life insurance premiums?
A life insurance premium is the amount of money that is paid, on a periodic basis, to an insurance compasny in return for insurance coverage on a person's life. Provided that premiums are paid as and when due, the insurer is obligated to pay to the beneficiary(ies) the face amount of the policy. The amount of premium payable is determined primarily by the amount of life insurance purchased and the risk factors (age, medical history, etc) of the person to be insured under the policy.
What are insurance premiums?
A life insurance premium is the amount of money that is paid, on a periodic basis, to an insurance compasny in return for insurance coverage on a person's life. Provided that premiums are paid as and when due, the insurer is obligated to pay to the beneficiary(ies) the face amount of the policy. The amount of premium payable is determined primarily by the amount of life insurance purchased and the risk factors (age, medical history, etc) of the person to be insured under the policy.
