- 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.
An amount paid to a beneficiary in a life linsurance policy.
payout, award, payable amount, money from insurance
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,
➥ A life insurance policy rider.
- An additional benefit that pays an additional sum to a beneficiary if the cause of death is deemed to be accidental.
- 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,
➥ CanEquity offers life insurance.
- An arrangement where an insurer agrees to pay a benefit to one or more beneficiaries in the event of the policyholder's death.
- 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.