Death benefit, also known as survivor benefit, is a term that describes an insurance policy that pays out a lump sum to a beneficiary in the event of the policy holders' death. The term "death benefit" therefore is defined as the benefit of a life insurance policy, rather than the policy itself. Often, beneficiaries will not even be aware of the life policy. When taking out a life insurance policy, as with any kind of insurance, it is important to evaluate what you can afford and what kind of financial dispensation your family may need to get back on their feet after your passing. Shop around and do not sign anything until your budget can accommodate the premiums and you are sure that the death benefit to be paid out is sufficient for your family's needs. If at all possible, consult an accredited financial advisor to assist you in evaluating these needs.