Death Benefit

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DEFINITION of 'Death Benefit'

The amount on a life insurance policy or pension that is payable to the beneficiary when the annuitant passes away.

Also known as "survivor benefit."

BREAKING DOWN 'Death Benefit'

A death benefit may be a percentage of the annuitant's pension. For example, a beneficiary might be entitled to 65% of the annuitant's monthly pension. Alternatively, the benefit may be a large lump-sum payment from a life insurance policy. The size and structure of the payment is determined by the type of policy the annuitant held at the time of death.

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RELATED FAQS
  1. What is the difference between the death benefit and cash value of an insurance policy?

    One of the most utilized tools in funding an estate plan is term or permanent life insurance. Purchasing a life insurance ... Read Full Answer >>
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    In the event that the owner of a Locked-In Retirement Account (LIRA) dies before reaching retirement age, the balance of ... Read Full Answer >>
  3. Can I put my IRA in a trust?

    You cannot put your IRA in a trust while you are living. You can, however, name a trust as the beneficiary of your IRA and ... Read Full Answer >>
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    Once a revocable trust is created, a trust maker transfers funds or property into the trust by including them in a list with ... Read Full Answer >>
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