death benefit

the money payable by a superannuation fund or RSA provider to the beneficiaries/dependants of a member/holder following his/her death. For an accumulation fund, the amount payable is typically the contributions made for or by the member plus some other (usually insured) amount which might be: a fixed dollar amount (e.g. $50,000), an amount which depends on age, a percentage of salary for each year of future service, a multiple of salary, etc. For a defined benefit fund, a common death benefit is the prospective normal retirement benefit (the retirement benefit the member would have received if he/she had been employed until normal retirement date, receiving the same salary up to retirement).

See also prospective normal retirement benefit , nomination of beneficiary , sum insured