What is included in the calculation of the net death benefit?

In calculating the net death benefit, it is important to include any additional benefits that may be provided under the policy. These could include features such as accidental death benefits, policy riders (like critical illness or long-term care riders), or other enhancements that increase the total amount payable to beneficiaries upon the insured's death. Therefore, the net death benefit is essentially the face amount of the policy plus these extra benefits.

This method of calculation ensures that the beneficiaries receive a comprehensive financial support package that reflects the total value of the coverage provided by the policy. It is essential for the insured and their beneficiaries to understand that these added benefits can significantly affect the overall payout.

On the other hand, simply considering only the face amount of the policy, subtracting unpaid dividends, or incorporating the cost of insurance does not adequately represent the full value of coverage and would lead to a less accurate understanding of the financial protection that the policy offers. Therefore, including extra benefits in the calculation is a key aspect of determining the net death benefit.