# Benefit 1: Benefit Payout

The LifeDAO is a mutual protection community that is an alternative to life insurance. In the event of a member’s passing, his designated beneficiaries will receive a lump sum payout based on his annual contribution, his individual risk index (B.BM) and the overall fund health index (BM.A). 

<table data-header-hidden><thead><tr><th></th><th width="66"></th><th></th><th width="40"></th><th></th><th width="44"></th><th></th></tr></thead><tbody><tr><td>Benefit payout</td><td>=</td><td>Individual Risk aka Base Benefit Multiplier (B.BM)</td><td>x</td><td>Overall Fund Health aka Benefit Multiplier Adjuster (BM.A)</td><td>x</td><td>Individual Annual Contribution</td></tr></tbody></table>

The beneficiaries are required to report the passing of the member and upload supporting documents to initiate the Payout process. The beneficiary may elect to receive a USDC or other stablecoin payment or payment in fiat[^1] through our offramp partners.&#x20;

For more details about how Benefit Payouts are calculated, please refer to the Takadao Whitepaper.

[^1]: Please note that fiat payments are not supported in all countries.&#x20;