The option to switch from an increasing to a level death benefit
can be exercised only once during the policy term and if done, must be done at the beginning of a year until the year of death.
Various settlement options available.
While term products may appeal to many clients who need a death benefit
without cash value buildup, some clients overlook the dual benefits provided by permanent, cash value life products.
If an employer is under contract to pay a death benefit
to an employee's surviving spouse, is the benefit taxable income to the surviving spouse?
It is particularly useful with C corporations, where the corporate alternative minimum tax can reduce by up to 15 percent the death benefit
received by the corporation.
"Up to now it was only the EasySave Transactional Account holders who qualified for a free death benefit
of N$3 000.
A TLANTA, Ga., September 12 -- Old Mutual Financial Network (OMFN), through OM Financial Life Insurance Company, has introduced ValueMaster Universal Life (UL), which the company describes as a low premium UL insurance product that offers four no-lapse guarantees and an enhanced catch-up provision, in addition to a fully-guaranteed death benefit
and flexible premiums.
Under what is called the "corridor percentage approach", the death benefit
is periodically adjusted so that it is at least equal to a specified percentage of the cash value, as required by current tax law.
However, the death benefit
would be $1 million (minus any loans taken against the policy) whenever the man dies.
* The qualified direct cost of insured death benefits
can be based on Table 2001, (1) or another acceptable method of determining the actual cost of the death benefit
To determine whether an insured's permanent insurance programs include a guaranteed death benefit
, ask the insurer for a "guaranteed illustration." An insurance professional should review the illustration to determine and evaluate the available options.
The policy's market value is the net present value of the death benefit
, factoring in the policy's duration and carrying costs.