Death Benefit

Importance: 1

Is a company: no

Is a proper noun: no

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

Synonyms

  • money from insurance
  • payable amount
  • award
  • payout

Acronyms

  • DB

Definition of Death Benefit

  1. 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.

Related Terms and Acronyms

  • 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.
  • Variable Death Benefit Definition,
    • A life insurance death benefit that differs depending on how well the insurance company's investment portfolio fares.
  • Single-Premium Life Insurance Definition,
    • Life insurance where all premiums are paid up front in a single lump sum payment.
  • 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.
  • Policy Loan Definition,
    • A loan where a life insurance policyholder's death benefit is used as collateral.
  • Life Insurance Trust (LIT) Acronym,
    • A legal entity that is made the beneficiary of a life insurance policy, often arranged to evade taxation.
  • Future Purchase Option Definition,
    • A provision that gives the policyholder the option to purchase additional insurance coverage at a future date.
  • 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.
  • 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.
  • Benefit Period Definition,
    • The total period of time where an insurer is contractually obligated to pay benefits.
  • 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.
  • Burial Insurance Definition,
    • Insurance that provides coverage for funeral expenses.
  • Accidental Death and Dismemberment Insurance Definition,
    • Insurance coverage for death or dismemberment (the loss of a body part).
  • Vanishing Premium Policy Definition,
    • A life insurance policy where policy dividends are used to pay the policy's premiums.
  • 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.
  • Contingent Beneficiary Definition,
    • A beneficiary who only receives his or her benefit when specific conditions have been met.
  • Beneficiary Definition,
    • An individual or entity chosen to receive benefits from a will, trust, deed or insurance policy.
  • 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.
  • With-Profits Policy Definition,
    • Insurance that pays the policyholder a portion of the insurer's profits.
  • Revocable Beneficiary Definition,
    • A beneficiary whose benefit can be modified without his or her consent.
  • 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.
  • Insurance Proceeds Definition,
    • The benefits received by an individual after a claim has been verified.
  • Living Benefits Definition,
    • The option for a life insurance policyholder to receive a portion of their death benefit in advance of their death.
  • Second-To-Die Insurance Definition,
    • Life insurance that only pays a death benefit when both spouses have died, commonly used in estate planning.
  • 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.
  • 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.
  • Whole Life Insurance Definition,
    • Permanent life insurance with level premiums for the policyholder's entire lifetime.
  • Declining Life Insurance Definition,
    • Life insurance with a decreasing death benefit, often used to insure mortgage debt.
Compare. Calculate. Apply today.
Compare Mortgage RatesMortgage CalculatorsApply for a Mortgage