zTermLifeInsurance Blog
Saturday, September 04, 2010
- 14
Jun
2010 -
Term Life Insurance from the Other Side-II: Annuity Payments for Life
Filed Under: Blogging
Term life insurance plans are increasingly being seen as the de facto plan for life insurance needs. The payout options for term life insurance are also becoming more and more nuanced, and they are no longer confined to a one-time payment.
Apart from the lump sum payment option, most term life insurance plans also feature an annuity method of payment. This means that the death benefit will be paid annually to the beneficiary. There are several types of annuity payments that are available. All insurance companies may not offer all the options, but it worthwhile checking.
Life income annuity payments are payments made for the life of the beneficiary. It can be with a certain period, in which case the payments are locked down for a certain period, and if the beneficiary passes on, the payments are made to his/her beneficiary. This is typically the case for insurance that benefits a spouse and thereafter, the children. Regular life income annuity payments are made to the beneficiary until he/she lives.
In last survivor annuity payments, which are valid only when there is more than one beneficiary, annual payments are made until the last beneficiary passes on. There are a few more annuity payout methods that term life insurance plans feature. It is important to take the advise of a financial adviser if you are the beneficiary of a term life insurance plan.
