YOU ASK:
What is the definition of Guaranteed Death Benefit?
WE ANSWER:
The Guaranteed Death Benefit is the payment the beneficiaries stand to receive upon the death of the insured person or the annuitant.
This amount is guaranteed, this may sometimes be the minimum amount, especially when dividends and other benefits come into place.
For annuities, the guaranteed death benefit is an amount that is equivalent to the investments made by the annuitant. This may also refer to the contract value of the annuity at it latest anniversary statement. This is a protection provided to the annuitant. By knowing that the beneficiaries will receive an amount equal to or greater than the investments he made, even when the investment market is not doing well.
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More insurance terms around guaranteed death benefit:
- Guaranteed Income Contract (GIC)
- Guaranteed Insurability (GI) Benefit
- Guaranteed Living Benefits
- Guaranteed Renewable Policy
- Guaranteed Replacement Cost Coverage
- Guaranty Fund
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- Guarantee Period
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- Gross Annuity Cost
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- Generally Accepted Accounting Principles (GAAP)