Define sepsis. sepsis synonyms, sepsis pronunciation, sepsis translation, English dictionary definition of sepsis. n. Systemic infection by pathogenic microorganisms, especially bacteria, that have invaded the bloodstream, usually from a local source. Sepsis is...
BREAKING DOWN 'Add To Cash Value Option'. In universal life insurance, policy owners can opt to participate in the surplus of the insurance company and receive the dividends annually. Here, they have the option to add the accumulated cash value to the face amount when the death benefit is paid.
The Death Benefit. When the insured dies, (be it the day after the insurance is activated or at age 120), the insurance company will pay the beneficiary the death benefit only. The insurance company will use any cash-value account to lower the amount it has to pay. The beneficiaries will not get the money in the cash-value account and the death benefit. As an example, say someone buys a $10,000 whole-life policy on his or her life at age 25. If the cash-value account is $8,000 when the person dies, the insurance company will pay the beneficiary $10,000 not $10,000 plus the $8,000 in the cash-value account.