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. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center