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Beshak Insurance dictionary

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Death Benefit payout options
Term Life Insurance

You can customize how the death benefit is paid to your nominee.

When the insurer pays the claim, the nominee’s bank account can suddenly get flushed with a lot of money. Now, if the nominee is not financially savvy, this money can get into the wrong hands or wrong instruments.

Insurers provide various claim payout options. Here you can choose to instruct the insurance company to pay the nominee the claim amount in parts/installments, in one shot or lump sum, or in a combination of installments and lump sum.

This option can be exercised by the policyholder or life assured during the policy term, only till the person insured (Life Assured) is alive. Apart from some insurers who allow discounting of future premiums, this option cannot be changed by the nominee/beneficiary.

The installments are paid in advance at the beginning of the period - annual, half-yearly, quarterly, or monthly. The installments can be with Interest which can differ from insurance company to insurance company.