What does my family receive when I die within the term of my life insurance policy?Death benefits depend on the type of policy purchased by the insured.
Apnainsurance.com Research Bureau
21 Dec 2007
Death benefits depend on the type of policy purchased by the insured. Go through the various types of life insurance policies to understand the death and survival benefits associated with each kind.
If the insured's death takes place during the term of the life insurance policy, the nominee receives the sum assured under the insured's life insurance policy. Depending on the type of policy, the nominee will also be entitled to bonus/profit/guaranteed additions if any.
If the insured's death takes place due to an accident and the insured had the accident death benefit rider on the policy, the nominee is eligible to receive double the sum assured. An additional term rider on the insured's policy also makes the nominee eligible to receive double the sum assured on the insured's death.
If death takes place after the period of the policy, i.e. the policy has matured, the nominee does not receive anything from the insurance company, unless specifically mentioned in the policy. Certain policies offer to cover the insured for the sum assured or a part of the sum assured, even after the policy has matured.
Basically, the nominee is eligible only for death benefit. Survival benefit, if any, is for the insured.
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