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.

BREAKING DOWN '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. Level Death Benefit

    A life insurance payout that is the same whether the insured ...
  2. Death Benefit

    The amount on a life insurance policy or pension that is payable ...
  3. Variable Death Benefit

    The amount paid to a decedent's beneficiary that is dependent ...
  4. Acceleration Life Insurance

    A type of policy that pays a portion (typically 25\% or 50\%) ...
  5. Life Insurance

    A protection against the loss of income that would result if ...
  6. Accidental Death Benefit

    The payment due to the beneficiary of an accidental death insurance ...
Related Articles
  1. Managing Wealth

    Life Insurance With an Increasing Death Benefit

    Why buy a life insurance policy with an increasing rather than level death benefit
  2. Managing Wealth

    Use Life Insurance to Help Those With a Disability

    Why and how to use permanent life insurance to help provide for a family member with a disability or special needs
  3. Financial Advisor

    Advising FAs: Explaining Life Insurance to a Client

    Life insurance was initially designed to protect the income of families, particularly young families in the wealth accumulation phase, in the event of the head of household's death.
  4. Insurance

    Life Insurance: How Long Does It Take To Get Paid?

    How to file for a life insurance payout – and how long it takes to receive it. Plus, new ways to plan for payments that provide an income stream.
  5. Insurance

    Tips for Helping Clients with Life Insurance Needs

    Life insurance needs will likely change over the client’s lifetime and again financial advisers can provide an objective sounding board.
  6. Retirement

    How Survivorship Life Insurance Works

    Should you buy a survivorship life insurance policy?
  7. Financial Advisor

    Is Life Insurance From Your Employer Enough?

    Covering the needs of the ones you would leave behind is not easy. But efforts to secure a life insurance policy outside of work should pay off.
  8. Insurance

    How Life Insurance Payouts Work

    Life insurance provides peace of mind to policyholders and their loved ones.
  9. Investing

    Making A Living On Death Bonds

    Find out if these macabre bonds are just the new blood your portfolio needs.
RELATED FAQS
  1. What is the difference between the death benefit and cash value of an insurance policy?

    Understand the difference between the various components of a life insurance policy including the death benefit and a policy's ... Read Answer >>
Hot Definitions
  1. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  2. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  3. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  4. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  5. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  6. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
Trading Center