Advertisement

Additional Death Benefit

Last updated: January 3, 2017

What Does Additional Death Benefit Mean?

An additional death benefit is a death benefit paid to a beneficiary as a supplement to a normal death benefit. In other words, additional death benefits provide extra sums in the event of the policyholder's death. However, some particular circumstances must usually be met in order for the additional death benefit to be approved.



Advertisement

Insuranceopedia Explains Additional Death Benefit

There are a number of different circumstances that could trigger an additional death benefit. For example, if a policyholder dies much younger than expected, this could result in the approval of an additional death benefit. These benefits can be very large - sometimes as large as the primary death benefit. So, for example, a person who has a life insurance policy worth 2 million dollars could potentially have an additional death benefit that is also worth 2 million dollars.

Advertisement

Share this Term

  • Facebook
  • LinkedIn
  • Twitter

Related Reading

Tags

InsuranceLife InsurancePersonal LinesPersonal

Trending Articles

Go back to top