How does IUL pay death benefit?

[Nir Melamoud]

He everyone,

I watched a video , that claim that with an IUL policy the death benefit, is been paid not in one check for the full amount, but they put it in a separate account, and give it 1% interest and distribute it to the beneficiaries over 30 years.

I could not find anything about the payment to either support or challenge that statement in the policy or in the internal,

do you know? can you tell me where I can find an official answer for this ?
thanks

 

[scagnt83]

He everyone,

I watched a video , that claim that with an IUL policy the death benefit, is been paid not in one check for the full amount, but they put it in a separate account, and give it 1% interest and distribute it to the beneficiaries over 30 years.

I could not find anything about the payment to either support or challenge that statement in the policy or in the internal,

do you know? can you tell me where I can find an official answer for this ?
thanks

That is not standard for IULs or any type of life insurance. It is an option on some policies, among many other variations of benefit distribution options. But it is not the standard way IULs pay death benefit to a beneficiary.

 

[Nir Melamoud]

thanks, is there someplace that its written , that they paying one big check ? cant find anything in the policy

 

[Tahoe Ray]

thanks, is there someplace that its written , that they paying one big check ? cant find anything in the policy

That's how insurance works in general.

"One big check"

The main exceptions would be some type of rider/irrevocable payout provision (I believe that Protective has one) but aside from that, getting one check is a settlement option from every carrier.

There should be a section in the policy called "settlement options" or "method of payment" under the death benefit explanation.

 

[Nir Melamoud]

I do not have it, but I only have the illustration document (45 pages)

 

[Tahoe Ray]

I do not have it, but I only have the illustration document (45 pages)

It will be in the policy, not the illustration.

 

[scagnt83]

I do not have it, but I only have the illustration document (45 pages)

Usually, if there is some type of non-standard payout clause on a policy. They include it in the illustration. That is no guarantee, but 9 times out of 10 they do in my experience.

It will 100% be in the contract. You get that after the policy is issued. But you can ask your agent to see a "Specimen Contract" from the carrier to review the various details.

But for this question, if the agent cant answer (this is a huge red flag if they cant), just call customer service and ask. You will have an answer in about 5 or 10 minutes.

An uncommon payout such as that would also most likely be in the marketing material provided for that product. So ask for that too.

 

[Nir Melamoud]

thanks