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. Accidental death is another common trigger, which is why some policies pair the standard payout with an accidental death benefit rider that pays out extra if the insured dies in a covered accident. 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. Whether a policy includes this kind of extra payout depends heavily on the insurer and the riders attached, so it’s worth comparing the best life insurance companies before buying.