Life insurance companies that allow the insured to set up payout structure?

[zakk]

Looking for a term life insurance policy that will give me the flexibility to establish a specific payout structure (e.g. monthly payouts) instead of doling out a lump sum to the beneficiary. My understanding is not all companies permit this.

 

[peacewithin]

@zakk Never heard of this. If this is what you are looking to accomplish, set up a trust as a beneficiary then stipulate in the trust how you want it paid out.

 

[fendertele52]

@peacewithin I work in claims. This is the answer. Set up a trust and make the trust the beneficiary.

 

[linzoe]

@fendertele52 Second

 

[lilmomma0727]

@peacewithin Be careful with how the trust is setup and in which state. Trusts are typically good to setup as the beneficiary but I’ve seen plenty of trusts setup incorrectly that would not provide tax free death benefits or creditor protection.

 

[maxyss]

@zakk Most of them have options. At the very least any of them will let the benefit be paid as a fixed term annuity. I’d speak to a broker in your state or Province and depending on the specifics of what you’re looking to set up they’ll point you in the right direction.

 

[yhoccotruyensaigon]

@zakk Only one of my insurers offers a rider that allows you to design completely how you want payouts structured and build a death benefit about it.

That being said, a trust is better suited for these matters.

 

[thebloodofchristjesus]

@zakk Bankers life has these options, I would suggest speaking to a seasoned agent or a financial advisor when contacting them.

 

[vrl]

@zakk Most life insurance policies, allow the beneficiary to choose from various number of payout options.

Like the others have said, if you want to determine how it’s paid out, you set up a trust that outlines exactly how you want the monies distributed in handled and assign a trustee to carry out your wishes based on the trust documents. Meaning the trust documents where you outline your wishes. Then you name the trust as the primary beneficiary. Fairly simple to do.

My guidance usually is, to name a trustee that you trust, in the trust documents, give them very broad authority to do what is appropriate, and then explain to them your wishes and goals. That allows them the maximum flexibility to do what is needed if something were to happen. In other words, you’re trusting them to carry out your wishes, but not legally binding them to do exactly what was laid out to the letter in your trust documents, if that doesn’t happen to be the most appropriate thing to do at the time of your passing. Hard to predict what things will be like in your life five, 10, 15 years from now.

If you’re doing this, because you have minor children, it’s a good idea to seek out an estate attorney, who can help you draft your wheel documents, as well as give you guidance on how to set up the trust documents.

 

[lilmomma0727]

@zakk Protective offers this on all of their UL and IUL policies. You can choose how many years you would like the death benefit to pay out as well as the annual or monthly amounts that the beneficiaries would receive.