Death Benefit
The lump sum paid to beneficiaries when the insured person dies.
What You Need to Know
The death benefit is the core promise of a life insurance policy. It is typically tax-free and can be used to replace income, pay off debt, cover funeral expenses, or fund education goals.
Choose a benefit amount that pays off liabilities and funds future goals so your family can maintain its lifestyle.
Sources & References
This information is sourced from authoritative government and academic institutions:
- naic.org
https://www.naic.org/documents/consumer_guide_life_insurance.pdf
Related Calculators & Tools
Put your knowledge into action with these interactive tools:
Related Terms in Healthcare & Insurance
ADLs (Activities of Daily Living)
Six basic self-care tasks—like bathing and dressing—that determine long-term care eligibility.
Any Occupation
Disability coverage that only pays benefits if you cannot work in any reasonable job based on your experience and education.
Assisted Living
Housing for people who need help with daily tasks but not round-the-clock medical care.
Beneficiary
The person, trust, or organization that receives the life insurance payout.
Benefit Period
How long your disability insurance will pay benefits once a qualifying claim is approved.
Cash Value
The savings component inside certain permanent life insurance policies.