At Brokers Insurance Agency in Lincoln, NE, we get many questions about how life insurance works. Many folks might have a general idea of what life insurance is. Still, even after buying a life insurance policy, the specifics, such as how a beneficiary receives a death benefit, can be a mystery. While every policy is different in terms of coverage and amounts, most life insurance policies function similarly when it comes to receiving the death benefit as a beneficiary.
What is a death benefit in life insurance?
In life insurance, the term “death benefit” refers to the sum the surviving beneficiary listed on the policy receives. Sometimes, a death benefit may be put into a specific account to accumulate interest over time. In this case, it will be paid out to a secondary beneficiary after the primary beneficiary’s passing. Still, the primary beneficiary will receive monthly interest payments on the amount. Some life insurance policies may also provide guaranteed income for life for the beneficiary, depending on factors laid out in the policy.
How can a beneficiary receive a life insurance benefit?
Once the life insurance policyholder has passed, the beneficiary can contact the insurance agent associated with the account. Then, the agent will assist with completing the appropriate documentation. In this process, the beneficiary should have multiple death certificate copies available to help verify that the benefits can be paid out. If the insurance agent is unknown or unavailable, a simple call to the insurance company itself will work to start filing the claim.
To see how our life insurance policies can give your family financial security after you pass, call our office at Brokers Insurance Agency in Lincoln, NE today!