It means that the payor paid enough premium into the policy that the accumulation of cash in the policy grew to an amount that exceeds the number shown as the life insurance amount.
For example, there is a $50,000 life insurance policy. The payor paid $30,000 into the policy at policy inception and paid nothing else. The $30,000 is credited interest or is invested in the stock market so that the $30,000 grows over time to an amount that exceeds $50,000.
If the $30,000 grows to $67,000, the death benefit is $67,000; not $50,000. The "face value" is $50,000.
Your death benefit will always be the amount paid to your beneficiaries should you die. Your Face value is almost always the same thing as your death benefit and certainly it is with term insurance. With Cash Value policies however, if you ever make a withdrawl or take a loan on your cash value, this will effect the face value should you die and not pay it back. So suppose you take out a $10K loan on a $100 K policy. Your death benefit is still $100K but your face value should you die is only going to be $90K
Whatever amount the face value is also known as the death benefit. Some of the older whole life's were as little as $100. Now it is more like $1,000 minimum face.
Probably part of the larger phrase, "50% face value" - 50% of the official value of some money document.Probably part of the larger phrase, "50% face value" - 50% of the official value of some money document.Probably part of the larger phrase, "50% face value" - 50% of the official value of some money document.Probably part of the larger phrase, "50% face value" - 50% of the official value of some money document.
The benefit for long-term care in an accelerated death benefit may range from one-fourth up to all of your funds in the death benefit. There are other factors that determine the amount, which may include the state where you are located and terms of contract. You also have the option to receive the benefit via lump sum or monthly.
This answer will depend on the type of policy that was taken out and if the policy is still "in force". If the policy is a term policy (unlikely), whatever is the death benefit face amount of the policy. If the policy is whole life or universal life policy, the policy may have a cash surrender value and a death benefit value. Meaning that you may be able to simply cash out the policy and get a check prior to death. Or, upon death, the value would be the death benefit face amount plus any unpaid dividends and interest minus any loans that may have been taken out. I am happy to answer more questions or help you with this. Brian Lombardo, CPA, Agent
Face value and death benefit are essentially the same. Commonly, the death benefit will be the same as when it was issued, regardless of the impact of changes in the economy ( inflation ) or the number of years since it was issued. The face value may be increased if the policy earned dividends - this will be stated in the policy - and they chose to have them remain with the policy. If the dividends were paid out to the policyowner each year when earned, then the original face value remains as the death benefit. The amount paid out as the death benefit will be decreased by any loan taken, plus interest, and any outstanding premium due. Of course, if she stopped making premium payments, the policy may not have been inforce on the date she died. As many relatives find out when their loved one dies, simply having a copy of the policy doesn't guarantee that any benefit exists. Again, with all insurance policies, a rep from the insurance company issuing the policy would be the best person to speak to on the policy.
The death benefit options may vary depending upon the type of life insurance purchased and the available policy provisions. A basic death benefit will provide a face amount or specified amount that remains level throughout the period of coverage. Other death benefit options provide for an increasing death benefit that includes a specified amount in addition to the accumulated cash value in the policy. Another type of death benefit option may provide for a return of premium payments in addition to the specified amount of coverage. See link for source
No that I have seen or read anywhere but the bigger the cash value the bigger the debt benefit proportionally.
Depends on how it is set up. My policy has a death benefit that actually increases by more than my cash value over the years so if i die my beneficiaries get the original face amount PLUS the cash value and then some!
With accidental death benefit coverage, the nominee is entitled to get further sum assured amount (SA x 2) in case of accidental death of the policy holder.
An accelerated benefit as applied to Life Insurance is usually a purchase of the policy for immediate cash. In exchange for the cash the purchaser becomes the beneficiary. In this way part of the death benefit comes to the individual during life. The purchaser assumes the risk of how long until death gives repayment and profit for the money advanced. Some policies have an accelerated death benefit clause. If purchased this allows the owner to redeem the face value (or whatever the agreement stipulates) upon proof that death is imminant within a spedified time as determined by medical experts. It is unlikely that the full face value of the policy will be paid as the insurance company assumes some risk that death might not occur in the projected time. There can be tax consequences for receiving benefits before they are due. Consult a CPA or Tax Attorney on this. Taxable income can reduce the expected benefit, thus making the receiver still short on funds to take care of immediate needs.
Pretty much any permanetn life policy can do that but you probably mean a Whole Life plan where the cash value equals the death benefit usually at age 100. 4lifeguild