Death benefit

A death benefit is the amount of cash paid to a beneficiary when a person dies. The amount paid is stated on a life insurance policy or annuity, noting the name of the beneficiary and the amount to be paid. The amount paid out from a life insurance policy is usually a lump sum, while the amount paid out from an annuity is more likely to be a consistent periodic payment.

Related Courses

Estate Planning Essentials 
Family Tax Planning