death benefit

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Death benefit refers to the assets a designated person receives when the holder of a life-insurance policy or pension account passes. The beneficiary may receive the assets as a lump-sum or it may be paid out incrementally according to the wishes of the original holder. Some death benefits like from life-insurance policies are tax free while others like annuities may face multiple taxes

[Last updated in July of 2021 by the Wex Definitions Team