What term refers to the portion of benefits received from a life insurance policy upon the death of the insured?

The term that refers to the portion of benefits received from a life insurance policy upon the death of the insured is known as the face amount. The face amount is the initial amount the insurer agrees to pay to the beneficiaries when the insured person passes away, provided that the policy is still in force. It represents the guaranteed payout of the insurance policy, and it is specified in the policy documentation.

In the context of life insurance, cash value refers to a savings component in some types of policies that can accumulate over time, but it does not directly indicate the benefits payable upon death. Renewal is related to the continuation of a policy but does not define any specific dollar amount. Premium refers to the regular payment made to keep the insurance policy active but does not pertain to the benefits received. Understanding these definitions clarifies the specific role and significance of the face amount in life insurance.