What does Death Benefit mean?

Death Benefit or ‘survivor benefit’ refers to the receiving of a life insurance policy benefit, after the main beneficiary of the policy deceases. It is possible that there is more than just one beneficiary entitled to receive a death benefit, if the policy holder requests so at the time the contract is drafted.

Death Benefit explained

The individual receiving a death benefit will usually be entitled to receive a certain percentage from the pension of the primary beneficiary of the policy. As such, the death benefit might constitute for example 60% of the policy holder’s pension and received as annuity, or it might constitute one single lump sum. The method of the payment, the size of the amount and many other important aspects is always depending on which type of life insurance policy has the primary beneficiary chosen at the time.