MANAGEMENT

Detailed explanation-1: -However, if the insured has a will and it specifies who the amount of the insurance benefit should go to after he/she passes away, then the benefit will go to the person mentioned in the will irrespective of the mentioned nominee.

Detailed explanation-2: -When the policy owner dies, the life insurance company will pay the death benefit to the named beneficiary. The death benefit will be paid to the deceased’s estate if no named beneficiary exists.

Detailed explanation-3: -Most people know that life insurance guarantees death benefit payment to the beneficiaries.

Detailed explanation-4: -A death benefit is a sum of money paid out to the beneficiary or beneficiaries of a life insurance policy, as long as the insured died while the policy was in effect. The death benefit is the primary purpose of buying life insurance coverage; it’s what your premium payments cover throughout the life of your policy.

Detailed explanation-5: -With term insurance, you can get a large amount of life cover^ (i.e. sum assured) at a relatively low premium rate. The benefit amount is paid out to the nominee in case of the death of the person insured during the term of the policy.