Annuities are contracts issued by life insurance companies, and many provide a guaranteed death benefit for a spouse or beneficiary.
You have the option of choosing between a level benefit or a graded death benefit.
Sometimes seniors who already have life insurance choose to take an additional policy if the death benefit payout of their original policy is low and not enough to pay for funeral, cremation or burial expenses.
However, if the insured lives beyond the term of the insurance policy, there is not any death benefit paid.
If the insured person dies during the time when the insurance policy is in effect, the insurance company pays the amount of the death benefit to the beneficiary of the policy.
