by pinkybanks » Fri Sep 11, 2009 08:14 pm
my motherinlaw passed away last month and she had a life insrance policy that had been paid up for years, like maybe 40 years, will that policy draw interest? say it was for $5000.
Posted: Fri Sep 11, 2009 08:44 pm Post Subject:
The answer depends on several factors, particularly what kind of policy it was. Generally, a paid up policy would continue to acrue interest on any cash value but unless it was a UL with an increasing death benefit option this would not likely result in a death benefit higher than the original face amount. However, if the beneficiary has not claimed the death benefit interest for the the time between death and disbursement is usually credited.
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