What is NOT typically included in a life insurance policy's death benefit?

In life insurance, the death benefit refers to the amount payable to the beneficiary upon the insured's death. While various features and riders can enhance a policy's value, not all are included in the base death benefit.

Cash value accumulation is a component of permanent life insurance policies (like whole or universal life) that allows the policy to build a cash value over time. However, this cash value is distinct from the death benefit, which is the face amount of the policy intended for the beneficiaries. Upon the insured's death, only the death benefit is paid out; the cash value can be accessed while the insured is still alive through loans or withdrawals but does not factor into the death benefit itself.

In contrast, options such as the accidental death benefit, waiver of premium benefit, and terminal illness rider all relate to enhancing benefit provisions or additional coverage within the context of the death benefit. For example, an accidental death benefit pays an additional sum if death occurs due to an accident, and a terminal illness rider allows for an advance payment of the death benefit in the event the insured is diagnosed with a terminal illness. Similarly, the waiver of premium benefit ensures that premiums do not need to be paid if the insured becomes disabled, thus maintaining the policy's death benefit.