Decedent
What Does Decedent Mean?
A decedent is an individual who has passed away.
In the context of insurance, many life insurance policies pay out death benefits upon a person’s death, at which point they become a decedent. It is common for people to designate their spouses, children, or grandchildren as beneficiaries of their life insurance policies.
Insuranceopedia Explains Decedent
When a person dies and becomes a decedent, death benefits from a life insurance policy are just one of many assets passed on to their beneficiaries. The decedent’s entire estate is also transferred to the beneficiaries, and some of these assets may be subject to estate taxes. However, life insurance death benefits are typically exempt from taxation. There are various ways in which death benefits can be paid out to beneficiaries, with lump-sum payments being a common option.
