ECONOMICS

Detailed explanation-1: -What is the Death Benefit? Death benefits are the assured sum given to the beneficiaries in the event of the demise of the policy holder. The death benefit is paid out within 30 days of the claim being made in most cases.

Detailed explanation-2: -When the policy owner dies, the life insurance company will pay the death benefit to the named beneficiary. The death benefit will be paid to the deceased’s estate if no named beneficiary exists.

Detailed explanation-3: -A death benefit is the primary reason someone purchases a life insurance policy; it’s the amount of money your insurer will pay out to your beneficiaries if you die during the policy’s term.

Detailed explanation-4: -A beneficiary is the person or entity that you legally designate to receive the benefits from your financial products. For life insurance coverage, that is the death benefit your policy will pay if you die. For retirement or investment accounts, that is the balance of your assets in those accounts.

Detailed explanation-5: -The beneficiary can choose to receive the death benefit as a lump sum payment or as a series of payments, depending on the terms of the policy and the insurance company’s payout options.