In a retained death benefit, the licensed provider or its financing entity will take over only the policy premiums for the seller.
The seller will receive no cash now. The policy beneficiaries will be assigned a retained death benefit amount directly from the insurance carrier which will be paid upon the death of the insured.
This amount is usually much more than what the seller receives in a traditional option.
The original owner will no longer be required to pay the premiums and will receive no cash now, but will receive a portion of the death benefit from the insurance carrier at the time of the insured’s death.
This option could be beneficial for those who find the premiums to be too expensive but still want their beneficiaries to receive a portion of the death benefit.
- Guaranteed Percentage at End of Policy
- No Future Payments