Death Benefit

What Does Death Benefit Mean?

A death benefit is the amount specified in a life insurance policy to be paid to the beneficiaries in the event of the insured’s death. In the case of an annuity, it may be a percentage of the annuitant’s monthly pension that becomes payable to the beneficiaries upon the annuitant’s death.

It is also referred to as a survivor benefit.

Insuranceopedia Explains Death Benefit

The exact amount and payment structure of the death benefit depend on the specific life insurance policy. For example, if the policy includes an accident rider, the death benefit may be double the face amount. Additionally, the death benefit amount is subject to any outstanding loans on the policy, such as unpaid premiums or a policy loan previously taken against the policy.