Death Benefit

A Death Benefit in an Indexed Universal Life Insurance (IUL) policy refers to the predetermined amount of money that is paid out to the designated beneficiaries upon the death of the insured.

In an IUL policy, the death benefit can often be chosen from among different options, such as a level death benefit or an increasing death benefit. The level death benefit is typically the face value of the policy, while the increasing death benefit includes both the face value and the accumulated cash value of the policy.

IUL policies allow policyholders to potentially increase the death benefit over time through the accumulation of cash value, which is tied to the performance of a stock market index, subject to certain caps and floors.