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Simple English definitions for legal terms
proceeds and avails
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A quick definition of proceeds and avails:
Proceeds and Avails: This refers to the money that can be received from a life insurance policy. It includes the amount of money that has been accumulated since the policy was issued, as well as the benefits that are payable when the policy matures or when the insured person passes away. Basically, it's the total amount of money that can be obtained from a life insurance policy.
A more thorough explanation:
Definition: Proceeds and avails refer to the cash-surrender value of a life-insurance policy, including the values accumulated since the policy's issue date and the benefits payable upon maturity and the death of the insured.
Example: Suppose a person has a life-insurance policy with a cash-surrender value of $50,000. If the policyholder decides to surrender the policy, they will receive the $50,000 as the proceeds and avails of the policy. Additionally, if the policyholder passes away, their beneficiaries will receive the death benefit as part of the proceeds and avails.
The examples illustrate that proceeds and avails refer to the total value of a life-insurance policy, including the cash-surrender value, accumulated values, and benefits payable upon maturity and death. These values are paid out to the policyholder or their beneficiaries depending on the circumstances.