Death Benefit
Insurance Glossary
The amount a life insurance policy pays to the named beneficiaries when the insured dies, also called the face amount on a term or whole life policy. Beneficiaries generally receive it free of federal income tax, though it can be counted in the estate for estate tax purposes depending on how the policy is owned. Outstanding policy loans, unpaid premiums and any accelerated benefit already taken are subtracted from what is actually paid.
This content is for general informational purposes only and is not insurance, legal, or financial advice. Coverage, exclusions, eligibility, and pricing vary by insurer, by policy, and by state, and only the policy documents control what is covered. Always confirm the details of any coverage with a licensed insurance agent or the issuing carrier before you buy.
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