Death Put


DEFINITION of 'Death Put'

An optional redemption feature on a debt instrument allowing the beneficiary of the estate of the deceased to put (sell) the bond (back to the issuer) in the event of the beneficiary's death or legal incapacitation. Also known as a "survivor's option".


The death put may be redeemed at par value, and then all proceeds are deposited into the estate. Should interest rates increase substantially, the put may earn a large profit for beneficiaries of the estate.

  1. Par Value

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  3. Heir

    HeirA person who inherits some or all of the estate of another ...
  4. Put Bond

    A bond that allows the holder to force the issuer to repurchase ...
  5. Beneficiary

    Anybody who gains an advantage and/or profits from something. ...
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    An option contract giving the owner the right, but not the obligation, ...
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