Foresters Financial

Death Benefit Overview:

1. A death benefit is the amount your life insurance policy pays to your beneficiaries when you pass away, as long as your policy is in force.

2. Beneficiaries can be people (such as a spouse or adult children), charities, trusts, or businesses.

3. You can choose multiple beneficiaries and allocate a percentage of the death benefit to each. For example, you could designate 80% to a spouse and 20% to a brother.

4. Beneficiaries can use the money for various purposes, such as everyday bills, paying off debts, or funding existing education debt tax-free.

Death Benefit Payout Options:

5. Lump-sum payout: The entire death benefit is paid out at once, usually tax-free.

6. Retained asset account: Beneficiaries can leave the benefit with the insurance company in an interest-bearing account, accessing it via a checkbook.

7. Life income payout: Guaranteed payments for life, based on your age when you file the claim.

8. Life income with period certain: Payments for a specific period, with remaining payments going to beneficiaries if you pass away before that period ends.

9. Specific income payout: Installments over time (e.g., 10% annually for 10 years)Ad1.

10. Remember, the death benefit provides financial security for your loved ones, and the percentage allocation ensures it’s distributed according to your wishes.