Definition - What does Death Benefit mean?
Death benefits are monetary sums that get paid to a decedent's beneficiary following their death. Death benefits typically come from pensions or insurance. An example of death benefits would be a spouse who receives life insurance payouts following the death of their marital partner.
Justipedia explains Death Benefit
Many insurance policies and pensions have clauses which stipulate that in the event of the person's death, their beneficiary will receive payments. These payments are death benefits. These benefits could come from a corporate pension, a government pension, life insurance, etc. In order to receive a death benefit, the person must be listed as the decedent's beneficiary. Death benefits are similar to an inheritance that gets passed along after a person dies.