What is a Term Life Insurance Death Benefit?

A death benefit for term life insurance is the amount of life insurance provided by the policy, which is the amount that would be paid out to the beneficiary of the policy upon the death of the insured person.

In order for a death benefit to be paid out the insured must pass away while the term life insurance policy is "In Force", which means during the "term" of the policy while the premiums have been paid.

If you have a $250,000 term life insurance policy with a 10 year term, the death benefit would be paid out if you pass away during the 10 year period and the death benefit amount paid out would be $250,000.

Make sure your beneficiary knows you have life insurance. The beneficiary would need to contact the insurance company and make a claim for payment of the death benefit upon your death.