What Does Decedent Mean?
A decedent is a person who has died.
In the context of insurance, many life insurance policies pay out death benefits when a person dies and becomes a decedent. It is common for people to name their spouses, their children, and their 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 that get passed on to their beneficiaries. The person’s entire estate will also be passed on. Some assets that are passed on will be subject to the estate tax. However, death benefits from a life insurance policy are typically not subject to taxation. There is a wide variety of ways in which death benefits can be paid out to beneficiaries, with lump sum payments being a common option.