Death Benefit


The amount of claim paid to the nominee/beneficiary under the life insurance policy after the life insured passes within the policy term is called the death benefit. It is the lump sum amount that a nominee receives when the life insured dies within the policy period.


The death benefit is the amount that helps your family, like dependent parents, spouse, or children, to revive in life after the death of the policyholder/life insured. Death benefits are not subject to income tax deductions.

At the policy's inception, the life insured can choose to pay the death benefit either as a lump sum or as regular payments. For example, considering the family needs, the death benefit can be paid either in a lump sum or as regular payments. To claim the death benefit, beneficiaries must submit the proof of death or the proof of deceased.

The death benefit is not paid when the life insured commits suicide after 12 months of the policy, homicide, intoxication due to drugs or alcohol, and self-inflicted injuries.


Pulkit purchased a term plan for Rs.1 crore. He declared his wife as the beneficiary under the policy. After paying the premium for 7 years, Pulkit died in a road accident. His wife received the death benefit as she was the declared beneficiary under the policy. The death benefit will be the sum assured as selected at the time of purchase of the policy.