What are natural death benefits?

Natural death benefits refer specifically to the benefits paid out by a life insurance policy when the insured individual passes away due to natural causes, as opposed to accidental or unnatural causes. This type of coverage typically includes death resulting from health-related issues or diseases, which aligns with the meaning of "natural death."

Understanding this concept is crucial for policyholders and beneficiaries, as it affects the type of coverage included in their life insurance policy. Policies generally define which circumstances are considered "natural" versus "accidental," leading to clear distinctions in the types of benefits available. The accurate identification of these benefits ensures that beneficiaries receive the appropriate payout in accordance with the terms of the policy when a natural death occurs.