Which term refers to the life insurance policy's payout to the beneficiaries upon the death of the insured?

The term that refers to the payout made to the beneficiaries upon the death of the insured is the death benefit. This is a fundamental aspect of life insurance, as it represents the financial protection provided to the insured's loved ones when the insured passes away. The death benefit amount is specified in the policy, and it ensures that beneficiaries receive a predetermined sum to help them cover living expenses, debts, and other financial needs after the insured's death.

In the context of life insurance, the other terms represent different concepts. An endowment policy pays out a benefit either upon the death of the insured or at the end of a specified term, rather than specifically addressing the situation of death. A premium refund refers to the return of premiums paid under certain conditions, and cash surrender value pertains to the amount available to the policyholder if they choose to terminate a permanent policy early. Understanding these distinctions is crucial for grasping the key functions of life insurance products.