Help protect your family’s future. Enter your zip code to get your free quote today!

Get Your Free Quote

Understanding the Different Types of Life Insurance Death Benefits

The primary purpose of any life insurance policy is to provide a death benefit to your designated beneficiaries if you die. There are various types of life insurance, and while all policies have a death benefit, different types of life insurance offer different options for how the death benefit is designed. 

death benefit differences

Types of Death Benefits

As mentioned, different policies have different types of death benefits. Two common death benefit types are level death benefits and increasing death benefits

Level Death Benefit

  • With a level death benefit, the life insurance payout amount stays the same throughout the duration of the policy.
  • Term life insurance policies usually offer a level death benefit.
  • Some universal and whole life insurance policies also offer a level death benefit, but because they have an additional investment or cash value component, the death benefit works differently. If you choose a universal or whole life policy with a level death benefit, the policy's insurance component decreases as the policy's cash value increases.

Increasing Death Benefit

  • If you choose a permanent policy, such as whole or universal, you may have an increasing death benefit option, meaning the death benefit will increase as the policy's cash value increases.

Get Help From an Agent

Understanding life insurance and what policies are available in your area can be confusing. That's why it helps to talk to someone who knows the life insurance landscape and can help you in your search.

To learn more about your life insurance options, speak with a licensed agent at 800-966-7169. Read through some of our guides listed below to learn more about how life insurance works.

*Applications for insurance may be subject to acceptance by insurer. Rates and coverage amounts will depend upon the carrier selected.

Help protect your family’s future. Enter your zip code to get your free quote today!

Get Your Free Quote

Related Information

Benefits of Life Insurance vs. Annuity Death Benefits

Life insurance and annuities operate differently. Compare the two below and decide which is the best option for you and your beneficiaries.

Read More

How Life Insurance Payouts Work

If you have a life insurance policy, a payout of the death benefit is preceded by a claim providing a death certificate.

Read More

How Do Life Insurance Benefits Work?

Gain a better understanding of life insurance benefits by reading through this comprehensive guide.

Read More

What is Term Life Insurance?

Term life insurance pays a death benefit to the policy beneficiary if the policyholder dies within the term of the policy.

Read More

Knowing Who Should Buy Life Insurance | Coverage Benefits

Life insurance pays money to beneficiaries after the death of a policy holder. Who should buy life insurance and how can the benefits be used?

Read More

Term Life Insurance

Protect your family from facing a financial burden after your death with a term life insurance policy.

Read More

Advantages and Benefits of Term Life Insurance

With a term life insurance policy in place, you can protect your family against the financial burdens associated with the loss of income after your death.

Read More

What is a Life Insurance Policy? Benefits and Basics

What is life insurance and how does it help families in the event of your death? It can help pay for the cost of funeral expenses, lost wages, debts, and more.

Read More

Life Insurance Basics: Who Needs It, Types of Insurance

Learn about life insurance’s basics: including the types of policies, their costs and benefits, and who needs coverage.

Read More