ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Death benefits are the assured sum given to the beneficiaries in the event of the demise of the policy holder. The death benefit is paid out within 30 days of the claim being made in most cases.

Detailed explanation-2: -But if your primary beneficiary dies before you do, then the death benefit would be paid to any contingent beneficiaries that you named on your application. If there are no contingent beneficiaries, then the death benefit will most likely be paid directly into your estate.

Detailed explanation-3: -If one of the primary beneficiaries dies, the policy proceeds would be split among the remaining primary beneficiaries or the deceased beneficiary’s dependents, if applicable. Otherwise, it would fall to contingent beneficiaries. Beneficiary designations can be per stirpes or per capita.

Detailed explanation-4: -Your spouse, children, and parents could be eligible for benefits based on your earnings. You may receive survivors benefits when a family member dies. You and your family could be eligible for benefits based on the earnings of a worker who died. The deceased person must have worked long enough to qualify for benefits.

Detailed explanation-5: -After the insured passes away the whole life insurance death benefit is distributed to beneficiaries, but any excess cash value may be retained by the insurance company.