Does Life Insurance Pay if You Are Murdered?

Under most circumstances, life insurance does pay in the event that you are murdered

In many cases, life insurance benefits are paid if you are murdered. However, a myriad of circumstances must be examined and considered to determine the likelihood of an insurance company denying benefits to heirs, even in a clear case of homicide.

Though each case is individual, the following are common issues that affect whether a life insurance policy will pay out if the insured has been murdered.

What Is IRA Annuity & Can I Withdraw at Retirement?

Annuities are one of many possible investment options that you can place inside an individual retirement account, although they can also be purchased as standalone investments outside formal retirement accounts.

Annuities within IRAs are commonly referred to as "IRA annuities," but there's no difference in the features of these products and those of non-IRA annuities.

What Licenses Do Bankers Have to a Sell Fixed Annuity?

Bankers are prohibited from soliciting, selling or even discussing annuities without a life insurance producer's license

An increasing number of bank representatives are selling insurance products. The banking and insurance industries are indirectly connected, and transitioning customers from one product line to the next is often logical.

However, conducting banking business and insurance transactions requires different licenses.

Can Annuities Have Primary Beneficiaries and Contingent Beneficiaries?

The annuity owner can specify any number of primary and contingent beneficiaries, and can add, remove or change them at any time

Although annuities are retirement investment products, they are managed by life insurance companies and contain provisions that allow owners to specify beneficiaries.

The annuity owner is free to specify any number of primary and contingent beneficiaries, and he can add, remove or otherwise change those designations at any time.

What Is Graded Benefit Whole Life Insurance?

Graded benefit whole life may be the only option for certain individuals

A life insurance policy is a contractual agreement with an insurance company to pay your heirs a sum of money if you die while the policy is active. Insurance companies take great steps to evaluate the liability presented by applicants, and will decline coverage to people who are deemed an unacceptable risk.

Graded benefit whole life policies are specific products made available to people who cannot obtain coverage through traditional means.

Life Insurance Beneficiary Rules

Source: StockMonkeys.com

While the concept of a life insurance beneficiary is simple, a number of situations and scenarios could create confusion and threaten the policy owner's wishes. Understanding the different types of beneficiaries and how to properly designate each one will ensure your beneficiaries get exactly what you had planned.

Are Life Insurance Death Benefits Taxed?

Not all life insurance benefits are received tax-free

Typically, beneficiaries do not have to pay income tax on life insurance death benefits when they are received as a lump sum. However, some insurance companies usually offer beneficiaries a choice of payout options other than a single lump sum.

In this case, a portion of these payouts may be considered taxable earnings. There are also other circumstances in which life insurance benefits may be taxed.