How is my Death Benefit Calculated?

While each policyholder will have individual circumstances — such as varying numbers of dependents or unique health concerns — there are some common ways to determine what your life insurance death benefit payout should be before you finalize a policy. One strategy is to add together the policy holder’s annual income, the cumulative amount that would be lost if he or she died today (presuming he or she would work through average retirement age) and burial costs. Even though this total may seem high, it allows for a worst-case scenario that would enable the person’s family to continue receiving the financial support this person had provided during life if he or she was to pass away at an early age.

Life Insurance Death Benefit Payout

Once the desired amount of the life insurance death benefit payout is calculated, you can then shop around to find a plan at that level with affordable premiums and that offers all of the other provisions you’re looking for in a policy.

In the event of someone’s passing, the funds can be used to cover final expenses, as well as to address income gaps left by the loss. Once the contract is signed and sealed, if the insured does die, all that his or her beneficiaries have to do is submit a death certificate and some other accompanying paperwork to kickstart the process of receiving the pre-set payout. The funds are almost always non-taxable and paid quickly, giving beneficiaries easy access to vital financial assistance needed to lay their loved one to rest and maintain their financial health.

A life insurance policy’s death benefit can be a vital resource to someone diagnosed with a terminal illness like cancer. If you have a death benefit rider in your life insurance policy then you can access the cash value of the policy while you are still alive. Regardless of how you intend to use the money, a life insurance death benefit payout can be a significant source of financial assistance.

Contact us to learn how Life Credit’s Living Benefit Loans can help you manage medical emergencies, pay for high-cost treatments, and keep you on your feet while you fight cancer or another terminal illness. Our loans allow policyholders to borrow against their death benefit and live lives with less financial burden and stress.



Life Credit Company

We are a licensed consumer lender that is dedicated to providing financial assistance for patients who are facing serious illness. With a Living Benefit Loan, from Life Credit Company, you can receive up to 50% of your life insurance policy’s death benefit today. Whether you need to catch up on medical bills, consolidate debt or take your family on a dream vacation, this is your money to spend without restrictions. If you have at least $75,000 of life insurance and have been diagnosed with cancer or other serious medical condition, you may qualify for a loan. Contact us today to speak with a professional counselor who is standing by to assist you.

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