death benefit

noun

: money payable to the beneficiary of a deceased

Examples of death benefit in a Sentence

Recent Examples on the Web

Adults 18 to 75 can get Amica term life for 10, 15, 20, 25 or 30 years, with a death benefit that can range from $100,000 to over $1 million. —Liz Knueven, CNBC, 12 Feb. 2025

Life insurance increases in value are tax deferred, and potentially, if the policy turns into a death benefit, the death benefit itself is tax-free. —Tax Notes Staff, Forbes, 11 Dec. 2024

The beneficiary of a life insurance policy is typically not taxed on the death benefits if they are given in a lump sum. —Brian Sloan, CNBC, 31 Dec. 2024

Legacy Planning For individuals concerned about leaving a legacy, the death benefit of an IUL provides tax-free wealth transfer to your beneficiaries. —Andre Pennington, Forbes, 11 Dec. 2024

Word History

First Known Use

1867, in the meaning defined above

Legal Definition

death benefit

noun

: money payable to the beneficiary of a deceased as a benefit (as under a policy of life or accident insurance or a pension plan)

Note: The right to death benefits is generally terminated in cases of fraud, as when an insured commits suicide after purchasing a policy or when the beneficiary murders the insured.