Death Benefit

Definition

• Also known as a survivor benefit, a death benefit is the total limit of benefits that are payable to the beneficiary in the event of a life insurance policyholder's death.

Notes
An amount paid to a beneficiary in a life linsurance policy.

Synonyms
award, payable amount, payout, money from insurance

Acronyms
DB

Related Terms and Acronyms

• Accidental Death and Dismemberment Insurance — Definition,
  • Insurance coverage for death or dismemberment (the loss of a body part).
• Accidental Death Benefit (ADB) — Acronym, Very Important,
  • An additional benefit that pays an additional sum to a beneficiary if the cause of death is deemed to be accidental.
  ➥ A life insurance policy rider.
• Beneficiary — Definition,
  • An individual or entity chosen to receive benefits from a will, trust, deed or insurance policy.
• Benefit Period — Definition,
  • The total period of time where an insurer is contractually obligated to pay benefits.
• Burial Insurance — Definition,
  • Insurance that provides coverage for funeral expenses.
• Commutation — Definition,
  • An option given to the beneficiaries of annuities and life insurance policies that allows them to modify the frequency and size of benefit payments.
• Contingent Beneficiary — Definition,
  • A beneficiary who only receives his or her benefit when specific conditions have been met.
• Declining Life Insurance — Definition,
  • Life insurance with a decreasing death benefit, often used to insure mortgage debt.
• Estate — Definition,
  • The ownership interest of an individual in real property.
  • The total sum of all the real property and personal property owned by an individual at time of death.
• Face Value — Definition,
  • The value of an asset, or the size of an insurance benefit.
• Family Income Rider — Definition,
  • A recurring or lump sum life insurance benefit that matches the policyholder's income.
• Future Purchase Option — Definition,
  • A provision that gives the policyholder the option to purchase additional insurance coverage at a future date.
• Informal Trust — Definition,
  • Also known as in-trust account or "bare" trust, this is an investment account registered in an adult's name in trust for a child. The account is used to save/invest funds for a child, and the funds must be reserved for and used by the beneficiary child.
• Insurance Proceeds — Definition,
  • The benefits received by an individual after a claim has been verified.
• Irrevocable Beneficiary — Definition,
  • A life insurance or segregated fund beneficiary whose benefit cannot be revoked or modified in any way without his or her consent.
• Life Insurance — Definition, Very Important,
  • An arrangement where an insurer agrees to pay a benefit to one or more beneficiaries in the event of the policyholder's death.
  ➥ CanEquity offers life insurance.
• Life Insurance Trust (LIT) — Acronym,
  • A legal entity that is made the beneficiary of a life insurance policy, often arranged to evade taxation.
• Living Benefits — Definition,
  • The option for a life insurance policyholder to receive a portion of their death benefit in advance of their death.
• Permanent Life Insurance — Definition,
  • A class of life insurance policies, which include both universal and whole life insurance, with guaranteed death benefits at the end of their terms.
• Policy Loan — Definition,
  • A loan where a life insurance policyholder's death benefit is used as collateral.
• Revocable Beneficiary — Definition,
  • A beneficiary whose benefit can be modified without his or her consent.
• Second-To-Die Insurance — Definition,
  • Life insurance that only pays a death benefit when both spouses have died, commonly used in estate planning.
• Single-Premium Life Insurance — Definition,
  • Life insurance where all premiums are paid up front in a single lump sum payment.
• Sprinkling Provision — Definition,
  • A provision that gives a trustee the authority to distribute life insurance death benefits as he or she sees fit, and to those who need the money the most.
• Survivorship — Definition,
  • The right of a person to secure ownership by reason of his/her outliving someone with whom s/he shared undivided interest in the land.
• Vanishing Premium Policy — Definition,
  • A life insurance policy where policy dividends are used to pay the policy's premiums.
• Variable Death Benefit — Definition,
  • A life insurance death benefit that differs depending on how well the insurance company's investment portfolio fares.
• Variable Life Insurance (VLI) — Acronym,
  • Life insurance that provides the policyholder the option to place some of his or her premiums into the insurer's investment portfolio, providing beneficiaries with a variable death benefit.
• Whole Life Insurance — Definition,
  • Permanent life insurance with level premiums for the policyholder's entire lifetime.
• With-Profits Policy — Definition,
  • Insurance that pays the policyholder a portion of the insurer's profits.