Death Benefit (Todesfallleistung)
The death benefit is the contractually agreed insurance benefit that a life insurer pays to the beneficiary upon the death of the insured person.
Concept
The death benefit is the contractually agreed insurance benefit that a life insurer pays to the beneficiary named in the policy upon the death of the insured person within the contract term. Its amount and structure depend on the specific product type and the terms agreed at contract inception.
Structure by Product Type
For term life insurance, the death benefit corresponds to the contractually agreed death benefit sum, which is usually level or decreases on a predetermined schedule over the term; for whole life insurance, the death benefit typically consists of the guaranteed sum insured plus any surplus shares allocated up to the time of death, while for unit-linked policies, the death benefit may additionally depend on the current value of the fund balance.
Payability and Documentation Requirements
Payability of the death benefit generally requires proof of the insured person’s death through an official death certificate, together with the submission of documents necessary to establish the insurer’s liability; where the cause of death is unclear or there is suspicion of an intentionally caused insured event, particularly by the beneficiary themselves, the insurer may withhold or refuse payment entirely until the circumstances have been fully clarified.