Death benefit
The lump sum paid by a life policy when the insured dies (subject to wording and exclusions).
Definition
The death benefit is the sum insured paid to beneficiaries on the insured’s death. Most policies pay as a single lump sum; some offer instalment options. Subject to the policy being in force, premiums paid, and no excluded cause applying.
Related topic comparisons
See also
- Sum insured — The lump-sum cover amount your policy pays on a valid claim.
- Beneficiary — The person(s) you nominate to receive the death benefit.
Not personalised financial advice. Definitions are editorial framings of how the term is used across NZ life cover. Your specific policy wording is the authoritative source.