Death benefit意思

"Death benefit" is a term commonly used in the context of insurance, specifically life insurance. It refers to the sum of money that is paid out by the insurance company to the beneficiaries named in the policy upon the death of the insured person. This benefit is intended to provide financial support to the beneficiaries and can be used to cover expenses such as funeral costs, outstanding debts, or to provide financial security for the dependents of the deceased.

The death benefit is usually a lump sum payment and can be paid out in different ways depending on the type of life insurance policy and the preferences of the beneficiary. For example, it can be paid in a single payment, in installments, or it can be used to purchase an annuity that provides a stream of income over time.

In addition to providing financial support to beneficiaries, life insurance death benefits can also be used to fund estate planning goals, such as minimizing estate taxes or providing for the inheritance of assets.

It's important to note that the death benefit is separate from any cash value or investment component of the life insurance policy, which may accumulate over time if the policy is a whole life or universal life policy.