Death Benefit

Published: | Updated: January 9, 2017

Definition - What does Death Benefit mean?

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.

Insuranceopedia explains Death 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.

How Well Do You Know Your Life Insurance?

The more you know about life insurance, the better prepared you are to find the best coverage for you.

Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.

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