Death benefit
Updated for plan year 2026
In plain terms
The death benefit is the sum a life insurance policy pays out to your named beneficiaries upon your death. It is the core promise of any policy, is generally income-tax-free to the recipients, and its size should be set to replace your income and clear your debts for as long as your family depends on you.
A plain example
You carry a $600,000 policy. If you die during the term, your beneficiaries receive $600,000 (typically free of federal income tax) to replace your income, pay the mortgage, and fund your children's education.
Why it matters
The death benefit is the number that determines whether your family stays financially whole. Sizing it with a method like DIME (Debt, Income, Mortgage, Education) beats guessing or accepting a salesperson's suggestion.