definition of death benefit
What is 'Death Benefit'. Death benefit is the amount on a life insurance policy, annuity or pension that is payable to the beneficiary when the insured or annuitant passes away. A death benefit may be a percentage of the annuitant's pension. For example, a beneficiary might be entitled to 65% of the annuitant's monthly pension at the time the annuitant passes away. Alternatively, a death benefit may be a large lump-sum payment from a life insurance policy.