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 ?
The Death Without Dependents Unit has filed a claim with the state Workers Compensation Appeals Board asking that Jeffrey Langley's death benefit be paid into an uninsured employees fund.
Under this plan, death benefits and cash values fluctuate according to the investment experience of the company managing the account.
If a policy is classified as an MEC, it is life insurance nonetheless, and the death benefit remains free of income tax (or should, if you've planned properly).
3 For federal income tax purposes, life insurance death benefits generally pay income tax-free to beneficiaries pursuant to IRC Sec.
Age 121/Lifetime Death Benefit Guarantees; Estate Liquidity Rider
Life insurance is an extremely efficient way to finance executive benefit plans because earnings are tax deferred, death benefits are tax-free and unrealized gains on insurance cash values are booked annually.
Some brokers may automatically ask for a specific death benefit guarantee period before fully understanding the client's need, the potential value, and the potential risk associated with shorter duration guarantees.
The death benefit disburses the greater of remaining account value or premiums less withdrawals.
Subsequently, X issued a check payable to A, as executrix of the estate, representing the pre-retirement death benefit, less 10% withheld as Federal income tax.
In addition to traditional death benefits, such policies provide "living benefits" that help policyholders deal financially with medical care and long-term-care costs.
Increased death benefit if death is due to cancer, heart attack or stroke
Flexible Death Benefit Guarantee to Lifetime; Low Premium to Endow; Rolling Targets; No Tobacco Use Incentive