Death Put
An optional redemption feature on a debt instrument allowing the beneficiary of the estate of the deceased to put (sell) the bond (back to the issuer) in the event of the beneficiary's death or legal incapacitation. Also known as a "survivor's option".
Investopedia Commentary
The death put may be redeemed at par value, and then all proceeds are deposited into the estate. Should interest rates increase substantially, the put may earn a large profit for beneficiaries of the estate.
Related Links
Advanced Bond Concepts
Bond Basics Tutorial
Who Is The Beneficiary Of Your Account?
See also: Beneficiary, Flower Bond, Heir, Par Value, Put, Put Bond