This is the amount of money which is paid to the beneficiary after the death of an insured person.
There are many types of policies that will pay out a death benefit. If you are killed in a car accident, then your accident benefits will pay a certain benefit. This depends on your position in the household.
Workers' Compensation Boards (WCB) will have a payment amount for death benefit.
Your life insurance policies will pay out upon death. This can be mortgage insurance, creditor insurance or an employee group plan. Some insurance companies offer a death benefit for property owners who die during the term of the policy.
The government even pays out a death benefit to the estate.
It is best to keep your paperwork regarding your estate up-to-date, so that you know whether or not you have adequate coverage to protect your family and/or your business.
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