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 ?
Value of the Death Benefit Switch Option by the Switch Probability
Additional riders available Accelerated Death Benefit, Accidental
To be deductible by the employer, a voluntary death benefit must qualify as an ordinary and necessary business expense.
With Key Person Insurance, as shown in the chart on page 171, the death benefit paid to a C corporation is included in adjusted current earnings as part of the alternative minimum tax calculations.
choose between two death benefit options similar to options A (or I) and B (or II) for UL policies.
For example, similar to death benefits in a qualified retirement plan, the value of life insurance protection provided by a WBP trust is currently taxable to the insured individual.
This is interest-sensitive life insurance where the death benefit and premiums are flexible.
Lastly, if you transfer your policy to an insurance trust more than three years before your death, the death benefit may escape estate taxes entirely.
ECC Executive Director Stella Zipagan-Banawis said they opted to temporarily stop the distribution of EC death benefits from 2006 to 2012 due to concerns over the long-term sustainability of the funds of the Government Service Insurance System (GSIS).
Four years na po ang lumipas, hindi pa adjusted ang employees' compensation and death benefit under Presidential Decree No.