Most of the people who want to secure the future of their families get their life insured. A life insurance is a contract between you and the insurer that has rules and regulations that both the parties have to abide by in order to make the policy effective. There are many life insurance companies operating out there that offer different types of facilities and services to the insured. What you get out of your life insurance policy largely depends upon the company that you choose. There is one major service that most of the insurance companies provide for the person insured is the death benefits. Death benefit is the payment of the money to the beneficiaries nominated by the insured at the time of the agreement after the death of the person insured.
Life Insurance Death Benefit
The services known as life insurance death benefits have a long list of other perks than the financial support that the family of the deceased gets to live a comfortable life. The death benefits are paid only if the premium of the insurance policy has been paid regularly till the death of the insured. The policies of different insurance companies vary and the facility that you get from one company might not be available with the other .The following are some of the facilities that the beneficiaries of the insured person, may enjoy after his departure. In most of the cases the beneficiaries are allowed to choose the mode of payment, whether they will take it on a monthly basis or they would opt for lump sum payments that they could invest in order to generate a regular income. At many a times the mode of payment is decided according to the insurance policy signed by the insured. Before making a choice about the mode of payment you should know that the amount you get as a lump sum is not liable to taxes but if you take the same amount on monthly basis you might get charged some extra taxes.
All about face amount
Inn many life insurance cases the amount that has to be paid to the beneficiaries in case of the death of the policyholder is the face value of the insurance policy the insured had decided on. Usually this amount is mentioned on the face of the insurance application as the amount the insurer will have to pay as a claim to his family. When a person mentions the face amount during the processing of the application the department of underwriting accesses the risk of the person insured. The face amount or the death benefits might get changed, but it is always hard to make a remarkable increase in them, but the amount of death benefits can be conveniently decreased.
When is death benefit paid?
In normal circumstances the family or the beneficiaries of the insured submit the claim to the insurance company. There are some specific rules that are followed while filling the form for the claim. There are some requirements that need to be met like providing a copy of original death certificates of the insured, and attach it to the claim form. There are several things that the insurance companies have to look into before paying the beneficiaries ,the whole process of payment might take as long as two months .In many cases the filed claims are entertained much earlier than two months.