• Death benefit is a payment to the recipient of a life insurance policy, an annuity or pension in the event of the death of the insured or the recipient of the annuity.

  • Beneficiaries must provide proof of death and proof of insurance coverage of the deceased to the insurer.
  • Beneficiaries of life insurance policies receive a death benefit without paying ordinary income tax.
  • Annuity recipients may pay income tax or capital gains tax on death benefits received.