Additional Death Benefit

AAA

DEFINITION of 'Additional Death Benefit'

An amount that is paid to the beneficiary of a life insurance contract that is separate from the original death benefit. The additional death benefit acts as an extra layer of payment in the event that a predefined situation occurs.

INVESTOPEDIA EXPLAINS 'Additional Death Benefit'

For example, let's assume that you have a life insurance policy worth $1 million. It is possible for the policy to pay an extra $1 million to your beneficiary in the event that you die within a certain age range.

There are many situations that will trigger an additional death benefit, so you may want to talk with your insurance company to see if there is a policy that is right for you.

RELATED TERMS
  1. Burial Insurance

    A basic type of life insurance that is used to pay for funeral ...
  2. Estate Planning

    The collection of preparation tasks that serve to manage an individual's ...
  3. Beneficiary

    Anybody who gains an advantage and/or profits from something. ...
  4. Life Insurance

    A protection against the loss of income that would result if ...
  5. Second-To-Die Insurance

    A type of life insurance on two people (usually married) that ...
  6. Death Benefit

    The amount on a life insurance policy or pension that is payable ...
Related Articles
  1. A New Approach To Long-Term Care Insurance
    Home & Auto

    A New Approach To Long-Term Care Insurance

  2. Selecting And Managing Insurance Payouts
    Insurance

    Selecting And Managing Insurance Payouts

  3. 5 Life Insurance Questions You Should ...
    Options & Futures

    5 Life Insurance Questions You Should ...

  4. Variable Vs. Variable Universal Life ...
    Retirement

    Variable Vs. Variable Universal Life ...

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center