The agent should actually inform you about the taxable benefits included in your policy. And, generally the death benefits are not subjected to any income tax.
Majorly, cash value of life insurance policy include the death benefit along with some amount of fund which can be used as saving or source for future premium payment.
The older you get, the greater are the chances of sickness and demise. Talking about the sex, male are likely to pay more as the life existence of a woman is generally higher than that of a man. If you are suffering from poor health or pre-existence disease then you are expected to pay a higher premium. Health is actually counted before age and sex.
Till the time it is a genuine case, the insurer has no point to reject the case. In case of deceptive claim or disappearing of an individual under mysterious circumstances, the insurer can hold the payment for investigation results.
You can have tax rebate on the policy under the Income Tax Section 80C. Also, the death benefit received as cover is not considered taxable income for the beneficiary. The cash value plans are generally not counted under the taxable section.
Yes, the policy continues if you are able to pay the premium during the grace period of 30 days. After completion of grace period, if still the premium is not paid then it depends on the company whether it allows you to continue the policy or not. In this case, the company does not guarantee to provide benefits if death situation death occurs.
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