What is defined as the amount paid to a beneficiary upon the insured's death?

The amount paid to a beneficiary upon the insured's death is referred to as the death benefit. This is a fundamental aspect of life insurance policies, designed to provide financial support to the beneficiary or beneficiaries selected by the policyholder, following the policyholder's demise. The death benefit is typically the face value of the life insurance policy and is meant to help cover various expenses such as funeral costs, mortgage payments, or continuing the family's standard of living.

In the context of this question, the other terms, while related to life insurance, serve different purposes. For instance, the premium is the regular payment made to keep the insurance policy active. Cash value refers to a portion of some permanent life insurance policies that accumulate over time and can be accessed or borrowed against, rather than being a direct benefit paid at the insured's death. Policy limit generally describes the maximum amount the insurer will pay under a specific policy, which may or may not correspond directly to the death benefit depending on the policy type and stipulations. Thus, the death benefit is specifically defined as the payout to beneficiaries and is a crucial feature of life insurance coverage.