MANAGEMENT

Detailed explanation-1: -Life Insurance protects future of your loved by paying a lump sum amount referred to as death benefit if an unfortunate event occurs. Some life insurance policies provide you a Maturity Benefit after the end of the policy term.

Detailed explanation-2: -A death benefit is a payout to the beneficiary of a life insurance policy, annuity, or pension when the insured or annuitant dies. For life insurance policies, death benefits are not subject to income tax and named beneficiaries ordinarily receive the death benefit as a lump-sum payment.

Detailed explanation-3: -Depending on the insurer, a life insurance payout can typically be distributed in three ways: in the form of a lump sum, via a life insurance annuity, or through a retained asset account. Check with the insurer to see which life insurance payout options they offer.

Detailed explanation-4: -Cash Value. In case of a whole life insurance, where your policy will last you your entire lifetime, a part of the premiums paid by you will be saved as the cash value component in a savings account. If you pass away, your beneficiary shall receive this cash value in addition to the life insurance component.

Detailed explanation-5: -A permanent or whole life policyholder may take out loans or withdrawals against the cash value of the policy while he or she is still alive4. 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.