A death benefit is the amount stated in a life insurance policy to be payable to the beneficiaries in case the insured passes away. In an annuity, it may be a percentage of the monthly pension of the annuitant that becomes payable to the beneficiaries in case of death of the annuitant.
It is also known a survivor benefit.
The exact amount and payment structure depends on the specific life insurance policy. For instance, if it includes an accident rider, the death benefit payable may be double the face amount. Moreover, the amount is subject to any outstanding loans on the policy, such as an unpaid premium or a policy loan taken earlier against the policy.
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