Additional Death Benefit
What Does Additional Death Benefit Mean?
An additional death benefit is a supplementary amount paid to a beneficiary in addition to the normal death benefit. In other words, it provides extra funds in the event of the policyholder’s death. However, certain specific circumstances must typically be met for the additional death benefit to be approved.
Insuranceopedia Explains Additional Death Benefit
There are several circumstances that could trigger an additional death benefit. For example, if a policyholder dies much younger than expected, it could lead to the approval of an additional death benefit. These benefits can be substantial—sometimes as large as the primary death benefit. For instance, a person with a life insurance policy worth $2 million could potentially have an additional death benefit of the same value, also worth $2 million.
