In life insurance, beneficiaries typically receive what when a policyholder dies?

In life insurance, when a policyholder dies, beneficiaries receive a death benefit, which is the primary purpose of a life insurance policy. This death benefit is a sum of money paid out to the designated beneficiaries upon the insured's death, providing financial support and security during a difficult time. The death benefit can help cover living expenses, pay off debts, or fund future needs like education or retirement, essentially serving as a financial safety net for the beneficiaries.

The other options do not accurately reflect what beneficiaries receive upon the policyholder's death. For instance, the return of premiums, cash value, or a refund of unearned premiums relate to different aspects of life insurance policies and are not typically received by beneficiaries at the time of death. The focus of life insurance is on the death benefit, ensuring that the intended recipients are financially protected after the loss of the insured individual.