insurance::benefit

Benefit

A predetermined sum or service payable by an insurer on occurrence of an insured event, independent of actual loss.

Canonical Definition

A benefit is a predetermined amount of money or service that an insurer agrees to pay or provide upon the occurrence of a specified insured event, regardless of the actual financial loss sustained by the insured. Benefits are characteristic of life, health, and personal accident insurance, where payment is triggered by the event itself (death, diagnosis, hospitalisation) rather than by proof of a specific financial loss. This distinguishes benefit-based products from indemnity-based products, where payment is calibrated to actual loss. Source: IAIS Life Insurance Glossary; Insurance Europe Health and Life Glossary.