Mortgage Insurance Death Benefit Payout Options
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Mortgage Insurance Death Benefit Payout Options
When you buy Mortgage Insurance, there are many different ways that your beneficiaries can receive their death benefits. These payouts can help them manage the death benefit proceeds better than they could on their own and can also add a safety net of guaranteed income over a certain period of time, which may help them sustain their current way of living.
Death Benefit Payout Options
Option 1: Lump Sum—Your loved ones may choose to receive a lump sum payment, which is a single payment of the entire death benefit amount.
Option 2: Annuity Payouts—If your beneficiaries would prefer to space out the payments, then they can choose a payout option similar to an annuity. Some examples include:
- Period certain income: Your beneficiaries can choose to have a guaranteed payment every year for a predetermined number of years. This option can be a great way for your loved one to live through their retirement.
- Life income: This guarantees your beneficiaries an annual income for life, but they may not be able to leave the remainder to anyone if they die before receiving all of the death benefit.
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