Would a $200 life insurance policy purchased in 1938 only pay a death benefit of $200 in 2019? Is inflation factored in? How does that work?
- STEPHENLv 76 months ago
A life insurance policy will do whatever it says in the policy.
Life insurance, generally, is when you pick a dollar amount that pays out when you die. If you picked a $200 benefit, that's what pays out when you die. No inflation.
- curtisports2Lv 76 months ago
Read the policy. It will say if any interest is paid on the cash value and if so, the rate of interest and other terms and conditions.
- JudyLv 76 months ago
Read your policy. Inflation generally wouldn't affect it.
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- car253Lv 76 months ago
The death benefit includes the face amount plus dividends plus interest on the dividends all those years.
Presuming it's paid up, no loans, etc...it would be safe to assume that it's worth more than $200. My guess would be 2-3 times that judging from other ones that I've had experience with, but nobody hear knows for sure. Inflation isn't factored in, but dividends and/or interest do compound typically.
- yLv 76 months ago
Cash value that is, if it is even still active, up to date, and the company still even exist. No inflation unless it is somehow spelled out in the terms of the policy.