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The death benefit is a benefit offered by life insurance policies to surviving family members upon the death of the insured. The most common type of death benefit for a policy is under the form of monthly annuity payments over a set period of years. Depending on your personal preferences there are different choices when it comes to deciding which type to take out from your current insurance company:
Term Death Benefit: This sort of plan will be fairly attractive if you don't need any long-term support after your loved one's death, as it means that you will only be paying out premiums while they are alive. It is also an option that can be found under many different company names and is often referred to in the same way, so you might find several offered by different companies.
Whole Life Death Benefit: Made popular by traditional life insurance companies, a whole life insurance plan guarantees you will receive a monthly payment until your loved one passes away. You will have to pay the premiums for this kind of a policy for the rest of your life. Of course, this could be very costly if it is not something that you are prepared to pay for, or if you have other aspirations in mind which would benefit from having some more funds available.
Term Death Benefit: This sort of plan will be fairly attractive if you don't need any long-term support after your loved one's death, as it means that you will only be paying out premiums while they are alive. It is also an option that can be found under many different company names and is often referred to in the same way, so you might find several offered by different companies.
Whole Life Death Benefit: Made popular by traditional life insurance companies, a whole life insurance plan guarantees you will receive a monthly payment until your loved one passes away. You will have to pay the premiums for this kind of a policy for the rest of your life. Of course, this could be very costly if it is not something that you are prepared to pay for, or if you have other aspirations in mind which would benefit from having some more funds available.
