To begin with, a life insurance policy can only be paid out if the company issuing it had been notified of the insured's death. Other times the company may know, but the beneficiaries could not be located or never submitted a claim form on the policy.
Cash value is the amount the owner receives if the policy is surrendered. Face value is the amount that the beneficiary receives upon the death of the insured. Both cash and face values are decreased by any loan taken against the value of the policy - either a premium loan to pay the premium then due, or a cash loan taken by the policy owner.
Presuming that the face value is $50,000, that would be the total amount paid to any one beneficiary or what would be split among several beneficiaries. If a loan was taken against the policy, then the loan plus interest would be calculated as of the date the insured died and that amount would be deducted from the face value before it is paid out to the beneficiary(ies).
A side issue may be the delay in making the payment to the beneficiaries. Sometimes the police will require that, in the case of a suspicious death, that the insurance company delay in making a payment. Other times the delay may be due to the company not being notified or beneficiaries are not found or are uncooperative.
If the company is found to be responsible for a delay in a death payment, then an individual State may require interest to be paid. However, if the beneficiaries can't be located or aren't cooperative, after a year or so the money is escheated to the State and any claim must be requested through it.
This answer depends upon the schedule of cash value in the policy itself. Suggest you locate the policy, read it and then talk to the company. At this point, it's even possible that the cash value equals the policy's death benefit. In other words, the cash value could be significant.
Depending on the type of life insurance policy, if a premium is due there is a grace period while payment can still be made to keep the policy in force. Grace period is usually 30 days. If the policy has cash value, premiums can be paid out of the cash value. Once the cash value depletes the policy will lapse if no additional payments are made.
The claim proceeding net of outstanding policy loan balance including accumulated loan interest will be paid to the beneficiary.
You could submit a claim but that usually means dying first. Short of dying, you could surrender the policy for its surrender value. The surrender value depends on many things but it starts a zero when the policy is bought and grows to the face amount as the policy ages. The hardcopy of the policy should show a face amount but will likely also include a schedule for the surrender value. If the hardcopy of the policy can't be located, a call to the company is in order.
It very much depends on the type of life insurance and the terms of the specific policy. In general, however, if it is a term policy, which has no surrender value, there will be no return of the premium because your life was insured for the first quarter of the policy, so you received value (coverage) for the payment you put in.
You reduce the lift insurance policy face value and payment by considering the basics of the cash value policy basics.
Answer this question… fact
50000 is a numeric value.
No, why should they - indeed if you have not insured your house for its full value and they see this they may seek to reduce their payment in proportion to the underinsurance. The equation they may use would be (sum insured / value at risk) * loss = claim sum paid
This answer depends upon the schedule of cash value in the policy itself. Suggest you locate the policy, read it and then talk to the company. At this point, it's even possible that the cash value equals the policy's death benefit. In other words, the cash value could be significant.
Any value greater than the number 50000
Depending on the type of life insurance policy, if a premium is due there is a grace period while payment can still be made to keep the policy in force. Grace period is usually 30 days. If the policy has cash value, premiums can be paid out of the cash value. Once the cash value depletes the policy will lapse if no additional payments are made.
If your policy indicates that there is no replacement coverage then that means you will be compensated (paid) based on the current depreciated value of your property in the event of a claim.
It s during any eventuality of the policy holder during the tenure of the term policy that question of claim settlement arises, that is true to whole life policy as well. So, finding out cash value for such policies is not realistic one.
$50000
The current is $0.23
If the policy was a term life insurance policy and presuming that you paid all premiums and the policy did not lapse for non-payment, it would be considered to be "fully paid-up". Therefore, upon the insured's death, the insurance company would be obliged to pay the face value of the policy. If the policy was a "whole life insurance policy", cash value would probably have accumulated so it may have more value ($2500 plus the accumulated cash value). A definitive answer cannot be given without reviewing the policy.