What Does Variable Death Benefit Mean?

The term refers to an amount given to a decedent’s beneficiary in addition to the amount which is guaranteed and specified in the insurance contract’s terms and conditions. The variable death benefit amount is due to change, that is to say, it is variable depending on the profitability of an insurance company’s separate investment scheme.

Variable Death Benefit Explained

One should understand by a variable death benefit only an additional sum of money which is added to the traditional minimum death benefit guaranteed by any insurance company.

This insurance product differs from the so-called fixed death benefits which provide their beneficiaries only with a fixed benefit amount. With a variable death benefit product beneficiaries have the chance to share in the insurance company’s profits and get some extra benefit amount.