A death benefit is the amount of money paid out to a beneficiary upon the death of an insured person. There are often tax advantages, and your InsPeak representative would be able to give you more specific details.
Life Insurance & Death Benefit: What You Need To Know
Life insurance is not a requirement for residents of Arlington, TX, but many decide to invest in this instrument to aid the survivors they leave behind. A named beneficiary can be a spouse, adult child, or almost any person. You can also leave your estate to a trust or a charitable organization.
It’s important to keep your insurance up to date through any significant life changes, like the birth of a child, getting married, or obtaining a divorce. Arlington, TX minors can be designated as beneficiaries but will often need to have a guardian or a trust appointed over their inheritance for a specified time.
Death benefits can come in lump sum payments, annuities, or installments, and this can be at the behest of the insured party or decided by the recipient after the insured’s passing. Beneficiaries can sometimes decide to have monies allocated, for example, into a retirement account, though these decisions will change the way in which taxes are assessed.
Life insurance premiums must be kept current for a death benefit to be paid, and the beneficiary is often required to provide the insurance company with proof of death. Generally speaking, a life insurance policy is one way to leave funds while avoiding probate, a sometimes lengthy legal process that can generate costs of its own and delay payments.
Contact Us For More Information
InsPeak works hard to provide you with the insurance package to meet your needs. Our knowledgeable agents can be reached by visiting us online, calling, or stopping by the office, and we invite you to do so today!