An annuity death benefit is the amount paid to your beneficiaries when you die. The standard death benefit is the greater of the account value or the premiums paid. Enhanced death benefit riders can provide a higher death benefit, such as the highest account value ever achieved.
Key Points
- Standard death benefit: greater of account value or premiums paid
- Enhanced death benefit rider: higher death benefit (e.g., highest account value ever achieved)
- Death benefit paid directly to beneficiaries
- Annuity avoids probate — passes directly to beneficiaries
- An independent agent can help you compare annuities with the best death benefits