The death benefit

What reduces it

• Outstanding policy loans and accrued loan interest, on permanent policies
• Amounts already accelerated under a living benefit rider
• Unpaid premium due at the date of death
• Partial withdrawals from cash value, on some policy designs
• A misstatement of age or sex on the application, which is generally adjusted rather than voided — the benefit is recalculated to what the premium would have bought

What can increase it

• Accidental death riders, where death results from a qualifying accident
• Dividends left to accumulate or purchase additional coverage, on participating policies
• Return of premium features on some designs
• Interest paid by the insurer for the period between death and payment, which is generally taxable
• A death benefit option on universal life that includes the account value

The two death benefit options on permanent policies

Universal life policies typically offer a level option, where the benefit stays at the face amount, and an increasing option, where the benefit is the face amount plus the account value.

The increasing option costs more because the insurer is at risk for more. Which you have affects both the premium and what your family receives, so check the declarations page rather than assuming.

Tax, briefly

Death benefits are generally not subject to federal income tax for the beneficiary. Interest the insurer pays on top generally is.

Estate tax is a separate question and turns on policy ownership. Confirm your situation with a tax professional.

The check worth doing now

Request a current statement showing the death benefit, any outstanding loan, and the beneficiary of record. Three lines, and they answer most of what a family would need to know.

If there's a loan against the policy, understand what it's doing to the benefit — and whether the policy is at risk of lapsing, which is a far worse outcome than a reduced payout.