Does your client worry about how a large lump sum death benefit will be spent once they have passed?
Life Insurance can pay out an enormous amount of money in a lump sum deposit to the beneficiary, giving them more money at one time than they have ever had.
This raises the question of how will that money be spent? Will it be spent the way your client intended? Are their children responsible enough to be in control such a large amount of money?
How does it work?
With an Income Provider Option from our selected carriers, the policy owner may select a guaranteed annual or monthly income stream death benefit for payment to one or more beneficiaries.
This endorsement is included with the policy and can provide your client the peace of mind knowing that the death benefit will be used as intended. Not only will this income provider option allow the policy owner to control how the benefits will be paid, it also decreases the current cost of the insurance. The carrier will provide graded premium discounts based on how long the income stream lasts.
The Partial Lump Sum Option
With this option, only half the death benefit is paid up front and the remaining is distributed in an income stream. This lump sum can help the surviving spouse with burial and probate costs along with any other immediate expenses that may be incurred with sudden death. The income stream can be adjusted any time while the policy is in force, but once the insured passes, the income stream will begin paying out as selected.
If you have a client in mind or would like to learn more about this great endorsement, please contact your dedicated Life Associate.