Listen to a Business English Dialogue About Death benefit
Charles: Hi Paisley, do you know what a death benefit is in insurance?
Paisley: No, Charles, I don’t. What is it?
Charles: A death benefit is the amount of money paid out to the beneficiaries of a life insurance policy upon the death of the insured person.
Paisley: Oh, I see. How is the amount of the death benefit determined?
Charles: The amount of the death benefit is typically specified in the life insurance policy and can vary depending on factors such as the policyholder’s age, health, and coverage amount.
Paisley: That makes sense. Are there different types of death benefits?
Charles: Yes, there are different types of death benefits, such as a level death benefit, which remains the same throughout the policy term, or an increasing death benefit, which grows over time.
Paisley: Got it. What are some common uses for the death benefit?
Charles: The death benefit can be used by beneficiaries to cover funeral expenses, pay off debts, replace lost income, or provide financial security for loved ones.
Paisley: Thanks for explaining, Charles. It’s essential to understand the benefits of life insurance for financial planning.
Charles: You’re welcome, Paisley. Life insurance can provide peace of mind knowing that your loved ones will be taken care of financially in the event of your death. Let me know if you have any more questions.