Which term describes the amount received by a beneficiary in the event of the insured's death?

The term that describes the amount received by a beneficiary in the event of the insured's death is known as the death benefit. This is a critical component of life insurance policies, as it represents the financial protection provided to the policyholder’s beneficiaries. The death benefit is generally selected by the policyholder at the time they purchase the insurance and can vary depending on factors such as coverage amount and policy type.

The death benefit provides financial support to the survivors, helping them cover living expenses, debts, and other costs that may arise after the loss of the insured. This amount is typically paid out tax-free to the beneficiaries, allowing them to receive the full sum intended to help them during a difficult time.

In contrast, cash value refers to the savings component of certain types of life insurance policies that build cash over time, which the policyholder can borrow against or withdraw. The premium is the amount paid periodically to keep the insurance coverage active. Policy value can refer to the overall worth of the policy, including its cash value, but does not specifically denote the amount a beneficiary receives upon the insured's death.