Claiming a Death Benefit

Claiming a Death Benefit

http://insureme.us/claiming-death-benefit/

Death Benefit, also known as Proceeds is the amount that is payable to his or her beneficiary by the life insurance company upon the insured’s death.

A person who purchases a life insurance policy is called a policyholder or insured. He or She will then be insured against death. Upon the death of the insured, the life insurance company will then compensate the beneficiary, which is the person who will receive the compensation upon the death of the insured, a lump sum of money which is called death benefit. Although, if the person purchases or buys a disability insurance, then there will be no death benefit should he die of old age or illness. This is because disability policy only provides coverage for the insured’s death or His of Her disability caused by accident only.