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 ?
It is a non-profit, charitable organization and does not maintain any funds for payment of accidental death benefits nor is there any provision in its memorandum and article of association or contract of source executed with employee providing for payment of such amounts.
Many carriers will only offer the option of purchasing additional death benefits when the contract is issued (although the benefits can usually be cancelled at any time).
The IRS said individually designed plans must either eliminate this language or clarify that the revocation does not affect the spouse's rights to the QPSA death benefits.
The death benefit type is level; however, a column is included with a true increasing death benefit for each policy.
The death benefit is paid income tax free (under current law), and no tax on the cash value growth while the insured is alive, so there is no effect on their Social Security.
Death benefit Level death benefit option (Option A)
Policies designed for maximum cash value accumulation with premium meant more to build value than grow death benefits.
Contractual death benefits are "income in respect of a decedent.
Death benefits for such policies depend on age stipulations decided on beforehand by the consumer and the insurer.
The question the consumer can answer for himself is whether it's worth 1% to get guaranteed income and guaranteed death benefits," said Condron.
419A(e)(1), post-retirement medical and death benefits funded by a WBP trust are subject to the Sec.
These programs are similar to universal life programs in that premiums and death benefits are flexible.