Let’s look at related terms to understand death benefit:-
Person who takes life insurance ie the person whose death would trigger life insurance payment to his family. His family in this case, is the beneficiary of his life insurance policy. Annuitant also refers to the person who is the beneficiary of an annuity or pension
Death benefit therefore refers to the amount of life insurance policy or the amount of pension that the beneficiary will receive in the eventuality of death of the annuitant. The death benefit could be classified either in percentage terms or as lump sum payment. The size and structure of the death benefit varies from policy to policy.