Define: Life Insurance Avails

A life insurance avail refers to the amount of money that is available to the policyholder or their beneficiaries upon the death of the insured individual.

The life insurance avail is typically determined by the face value of the policy, which is the amount of coverage specified in the insurance contract.

Yes, the life insurance avail can be used for any purpose, such as paying off debts, covering funeral expenses, or providing financial support to the beneficiaries.

In most cases, life insurance avails are not subject to income tax. However, if the policyholder had previously transferred ownership of the policy or if the policy was part of an estate, there may be potential tax implications.

In certain circumstances, the life insurance avail can be contested. For example, if the policyholder provided false information during the application process or if there are disputes regarding the beneficiaries, the avail may be subject to legal challenges.

In general, life insurance avails are protected from creditors and cannot be garnished to pay off debts. However, there may be exceptions if the policyholder had assigned the policy as collateral for a loan.

The life insurance avail cannot be changed after the policy is issued unless the policyholder decides to increase or decrease the coverage by contacting the insurance company and making the necessary adjustments.

No, the life insurance avail can only be accessed upon the death of the insured individual. However, some policies may offer living benefits or accelerated death benefits that allow for partial access to the avail in case of terminal illness or other specified conditions.

The life insurance avail cannot be transferred to another person. However, the policyholder can designate different beneficiaries to receive the avail upon their death.

If the life insurance avail is not claimed by the beneficiaries, it may be held by the insurance company until a valid claim is made. The specific rules and timeframes for unclaimed life insurance avails vary by jurisdiction.