Enhanced Death Benefit

An Enhanced Death Benefit is a feature within an Indexed Universal Life (IUL) insurance policy that offers an additional layer of protection to the policyholder's beneficiaries.

This benefit ensures that, upon the death of the insured, the beneficiaries receive an amount that may be higher than the policy's accumulated cash value or the basic death benefit. The enhanced death benefit is designed to protect the policyholder's investment in the policy, even if market conditions lead to lower cash value accumulation.

The specific terms and conditions of the enhanced death benefit, such as the amount and any additional cost, vary among insurance providers and policies.