What is a Life Insurance Death Benefit?

When you buy your life insurance policy you select an amount of life insurance protection you want to purchase.

For instance, you may buy $100,000 of life insurance coverage.

The death benefit would equal $100,000 which is the amount paid out to the beneficiary of your life insurance policy upon your death if you are the insured person on the policy.

To get the death benefit your beneficiary would need your life insurance policy information and to contact the insurance company to notify them of your death.

The death benefit is usually paid out free from any federal income taxes. A check is mailed to the beneficiary upon completion of all relevant documents and requirements provided to the insurance company, including an original death certificate for the insured person who passed away.