| the amount of money to be paid under the terms of an insurance policy to the designated beneficiary upon the death of the insured. |
| death benefit n. Insurance money payable to a deceased person's stipulated beneficiary. |
Death Benefit
The amount on a life-insurance policy or pension that is payable to the beneficiary when the annuitant passes away. Also known as "survivor benefit".
Investopedia Commentary
A death benefit may be a percentage of the annuitant's pension. For example, a beneficiary might be entitled to 65% of the annuitant's monthly pension. Alternatively, the benefit may be a large lump-sum payment from a life-insurance policy. The size and structure of the payment is determined by the type of policy the annuitant held at the time of death.
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See also: Annuitant, Beneficiary, Contract Holder, Life Insurance