What is the amount paid upon the death of the insured in a life policy called?

What is the amount paid upon the death of the insured in a life policy called?

• A. Death benefit
• B. Beneficiary
• C. Warranties
• D. Concealment

Answer: (A)

The amount paid upon the death of the insured is the death benefit. This is the policy’s promised payout to the beneficiary when the insured dies while the policy is in force. It’s typically equal to the policy’s face amount, though in some cases it can be reduced by outstanding loans or affected by certain riders. The recipient of that payout is the beneficiary, not the amount itself. Warranties are assurances about truthful information in the contract, and concealment is failing to disclose information; neither term describes the payout.

The amount paid upon the death of the insured is the death benefit. This is the policy’s promised payout to the beneficiary when the insured dies while the policy is in force. It’s typically equal to the policy’s face amount, though in some cases it can be reduced by outstanding loans or affected by certain riders. The recipient of that payout is the beneficiary, not the amount itself. Warranties are assurances about truthful information in the contract, and concealment is failing to disclose information; neither term describes the payout.