What does the term "death benefit" refer to in a life insurance policy?

The term "death benefit" in a life insurance policy specifically refers to the total payment made to beneficiaries upon the policyholder’s death. This amount is typically predetermined in the policy and serves as financial support for the beneficiaries when the policyholder passes away. The primary purpose of a life insurance policy is to provide this benefit, offering financial security and peace of mind to the insured's loved ones during a difficult time.

In contrast, the other options do not accurately depict the concept of a death benefit. For instance, the amount paid to the policyholder while alive pertains to living benefits or other types of insurance features, rather than a death benefit. Similarly, the cash value accumulated in some policies refers to a savings component, which is separate from the death benefit itself. Lastly, the policyholder’s income during the policy period does not align with the definition of a death benefit, as this income is related to the policyholder’s living expenses rather than the financial disbursement after their death.