Variable Death Benefit

Variable Death Benefit

A benefit in some life insurance policies where the designated beneficiary is guaranteed a minimum death benefit and an additional benefit, depending on the performance of some investment portfolio. This allows the beneficiary the possibility of a much larger death benefit that she/he would otherwise receive. However, the minimum benefit can be smaller than normal death benefits paid in other life insurance policies. See also: Variable life insurance.
References in periodicals archive ?
The Variable Death Benefit provides a death benefit equal to the face amount of the policy plus the policy's account value.
New England Financial's new product offers a level or variable death benefit, 29 subaccounts and a minimum face amount of $25,000 to make it available to lower-paid workers.
Contractual five-year No Lapse Guarantee provision; -- No Lapse Guarantee rider for 10-year, 20-year or to age 100; -- Life Extension Rider extends full death benefit beyond age 100; -- Death Benefit Option 3 pays a variable death benefit equal to the face amount plus the total premiums paid less any partial withdrawals; -- Issue age increased to 90; and -- Loan interest rate lowered to six percent.
It guarantees a minimum death benefit but, unlike conventional life insurance, also provides a variable death benefit and a variable cash value reflecting the values of separate, segregated accounts of the insurance company.