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Another feature of flexible death benefit is the ability to choose option A or option B death benefits and to change those options over the course of the life of the insured. Option A is often referred to as a "level death benefit"; death benefits remain level for the life of the insured, and premiums are lower than policies with Option B death ...
Because term life insurance is a pure death benefit, its primary use is to provide coverage of financial responsibilities for the insured or his or her beneficiaries. Such responsibilities may include, but are not limited to, consumer debt , dependent care , university education for dependents, funeral costs, and mortgages .
a level death benefit (often called Option A or Option 1, Type 1, etc.), or a level amount at risk (often called Option B , etc.); this is also referred to as an increasing death benefit. Policyholders may also buy Flexible Premium UL with a large initial deposit, thereafter making payments irregularly.
Accidental Death Benefit (ADB): These are life insurance policies that only pay out due to a qualifying accident, such as a car crash. What qualifies depends on the insurer and the policy.
Level death benefit: The death benefit remains consistent, similar to whole life insurance. Increasing death benefit: The benefit grows along with the cash value, although premiums are typically ...
Death Benefit Type. Description. Payout Conditions. All-Cause Death Benefit. Covers most causes of death, found in traditional life insurance policies (term, whole, universal life).
The maximum premiums are set by the IRS guidelines such that the premiums paid within a seven-year period after a qualifying event (such as purchase or death benefit increase), grown at a 6% rate, and using the maximum guaranteed costs of insurance in the policy contract, would endow the policy at age 100 (i.e. the cash value would equal the ...
A life insurance exclusion is a situation or circumstance that prevents your beneficiaries from receiving your death benefit. Essentially, it means that certain causes of death are not covered by ...