Definition of death benefit
: money payable to the beneficiary of a deceased
First Known Use of death benefit
Financial Definition of DEATH BENEFIT
What It Is
How It Works
Also called a survivor benefit, a death benefit may come in the form of a one-time payment on a life insurance policy or in a series of income payments that are a percentage of those granted to the annuitant prior to death. For instance, as the beneficiary on a life insurance policy, a surviving spouse will be entitled to a one-time monetary payment upon the death of the other spouse as specified in the policy. Likewise, upon the death of an annuity holder, the beneficiary will receive ongoing annuity payments at a percentage of those received by the annuitant.
DEATH BENEFIT Defined for English Language Learners
Definition of death benefit for English Language Learners
: money that an insurance company pays to the family of someone who has died because that person had life insurance
Legal Definition of death benefit
: money payable to the beneficiary of a deceased as a benefit (as under a policy of life or accident insurance or a pension plan)
Additional Notes on death benefit
The right to death benefits is generally terminated in cases of fraud, as when an insured commits suicide after purchasing a policy or when the beneficiary murders the insured.
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