Death benefit

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Death Benefit

In life insurance and annuities, the amount of money that is paid to the policyholder's survivor(s) upon the policyholder's death. That is, the amount may be a lump sum determined at the outset of the policy or annuity that is paid when the policyholder dies, or it may be a monthly payment that begins to be paid when the policyholder passes away and remains payable until the survivor's death. The former death benefit is more common in life insurance and the latter is more common in annuities.

Death benefit.

A death benefit is money your beneficiary collects from your life insurance policy if you die while the policy is still in force.

In most cases, the beneficiary receives the face value of the policy as a lump sum. However, the death benefit is reduced by the amount of any unpaid loans you've taken against the policy.

Some retirement plans, including Social Security, also provide a one-time death benefit to your beneficiary at the time of your death.

References in periodicals archive ?
Even under the IRS notice, the excess of the death benefit over the cash value in an equity split-dollar plan is income tax-free.
It wouldn't eliminate the policy's effectiveness in providing a low-cost death benefit, however.
The so-called "100 to 1" test does not limit the death benefit, but instead it provides a safe harbor for plan trustees.
Its flagship product, Multi Option Achiever, has 25 investment choices, a death benefit that ratchets every three years as part of the package, and free withdrawals that are the greater of 10% of assets or accumulated gains.
The policy was a whole life paid up at age 90 with a death benefit of $100,000.
Whether a client wants to focus primarily on death benefit protection or split their focus between death benefit protection and supplementing retirement income, Pacific Select Exec III has features to help including:
The same death benefit at retirement because the coverage is permanent.
Winn-Dixie argued that the plan could produce tax-independent benefits if a catastrophic event produced large, unexpected death benefits.
4 -- The Kemper Life Insurance Companies today announced that they will make available an Accelerated Death Benefit Rider on the New KemperCertain-T XL policy offered by Federal Kemper Life Assurance Company and the FLA-CT XL policy offered by Fidelity Life Association.
And there is no tax-free death benefit of life insurance to reimburse the company for its costs in providing the benefits.
MINNEAPOLIS -- With today's longer life expectancy and more complex financial needs, life insurance can not only provide important death benefits, it can also provide financial security throughout a lifetime.