Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
The death benefit amount of a life insurance policy is the current face value of an in force policy. Most life insurance death benefit amounts remain the same from their date of issue. But some permanent cash value policies have options that can increase the death benefit amount beyond it's original benefit. Some accumulating policies may increase in cash values enough to force an increase in the death benefit amount.
The death benefit of a life insurance policy is the amount of money that the life insurer will pay the named beneficiary(ies) upon the death of the insured of the contract.
For example, if the stated death benefit of a policy is $1,000,000. The the insurer will pay the beneficiary(ies) $1,000,000 if the insured dies while the policy is in force.
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For example, if the stated death benefit of a policy is $1,000,000. The the insurer will pay the beneficiary(ies) $1,000,000 if the insured dies while the policy is in force.