A Life Insurance that Pays Out Over Time?

taz

Expert
71
Florida
I beleive Kansas city life has it where you could set it up like that. Does anyone know of any other companies that would offer this.
 
Check out the Transamerica IPO - its a FREE option on their products that lets the insured setup a monthly payment for the benefit with an optional initial payment amount and/or a final payment amount.
 
How would that answer the question about a company where you could SET IT UP TO PAY OVER TIME?

Rick

If the insured dies and the death benefit is paid out that could be rolled into an immediate annuity that would pay out over time.
 
If the insured dies and the death benefit is paid out that could be rolled into an immediate annuity that would pay out over time.

Correct. Most policies have a section that covers Settlement Options that the beneficiary can choose before the benefit is paid out. I always thought all policies had them but I was looking over a Settlers sample and they don't have that option, only the lump sum payout. This is actually the first one I've seen that didn't have it. Settlement options is not a company product but rather a provision of the contract.
 
Another company to add to the list would be AIL/NILICO. A part of their pitch is selling a small face amount for the funeral and than a structured settlement as the death benefit. I believe it's a captive only product that has relatively high rates though. Of course opening the door for an immediate annuity would give the customer the most flexibility. There are companies that make their living off of buying out settlements because folks can't and/or don't want to wait for the payments to come in over time.
 
Transamerica allows you to illustrate different settlement option scenarios. Keep in mind that part of the income stream is interest and thus taxable.
 

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