Life insurance pays whatever amount that you purchase. Some people take. Policy out for $5,000 or less just to have a small policy to cover final expenses. Other people take policies out that will pay in the millions.
You do a needs analysis to determine what you need and what type of insurance to get. It will pay the full amount that you bought upon your death.
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
There are a couple answers to this depending on what type of policy was purchased. With a term policy, the payout will be the stated policy face amount, less any monies used previously for terminal illness payout.
With universal life type policies it could be face amount (less any terminal illness withdrawal) or face amount, plus cash values (less any terminal illness payment)
Whole life depending on the type chosen and internal workings selected can either pay face (less terminal) or face plus additional paid up additional face amount earned over the life of the policy.
Death benefits will also include any interest earned between date of death and date claim is paid. With cash value policies any outstanding policy loan values will also reduce the payout.
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You do a needs analysis to determine what you need and what type of insurance to get. It will pay the full amount that you bought upon your death.
With universal life type policies it could be face amount (less any terminal illness withdrawal) or face amount, plus cash values (less any terminal illness payment)
Whole life depending on the type chosen and internal workings selected can either pay face (less terminal) or face plus additional paid up additional face amount earned over the life of the policy.
Death benefits will also include any interest earned between date of death and date claim is paid. With cash value policies any outstanding policy loan values will also reduce the payout.