What is meant by "benefit payout" in life insurance?

"Benefit payout" in life insurance refers to the amount of money that is payable to the beneficiaries when the insured individual passes away. This payout is typically specified in the insurance policy and is one of the primary purposes of purchasing life insurance—to provide financial support to loved ones in the event of the policyholder's death.

When considering the context of insurance policies, this payout is a crucial aspect that helps ensure that beneficiaries have financial security after the loss of the insured. The benefit can vary depending on the amount of coverage chosen at the time the policy was taken out, as well as any additional riders or terms included in the policy.

It's important to note that the other options refer to different concepts in insurance. The total premiums paid is the amount the insured has contributed over the life of the policy, investment growth pertains to potential earnings within certain policy types, and the cost of the insurance represents the premium payments made, rather than the benefit itself. Thus, the correct answer appropriately identifies the actual monetary benefit that beneficiaries receive, making it the essential concept associated with "benefit payout" in life insurance.