What Is Death Benefit?

Death benefit

Death benefit is a an amount your beneficiaries receive from a life insurance provider (an insurer) in case a you die within a coverage period. These beneficiaries are nominated by you (a policy owner) and are mentioned into the declaration page of the insurance contract. 

The death benefit can be paid in a lump sum or installments depending on the wishes of the policy owner.

Importance of death benefits

You wouldn't like your dependents (family) to suffer economically once you pass away. Thus, having a life insurance cover guarantees good life for your dependents after your death by giving them death benefit as the financial support. The death benefit can help them tackling economic challenges and giving them a peace of mind.

1. Helps your family to tackle economic challenges after your death

The death benefit helps your family to afford different living expenses like buying food, paying school fees, paying bills, clearing outstanding debts and other expenses once you die.

2. Gives you and your dependants a peace of mind

The guaranteed death benefit gives you and your family a peace of mind knowing that once you die your family will be able to afford the living expenses.