Term insurance benefits are payable

Term insurance benefits are payable at death. If the policyholder passes away during the term of the policy, the insurer will pay out a death benefit to the beneficiaries listed on the policy. The death benefit is typically a tax-free lump sum payment that can be used to cover expenses such as funeral costs, outstanding debts, or provide financial support for dependents. It's important to note that if the policyholder outlives the term of the policy, there is no payout. Also, term insurance policies generally do not have any cash value or investment component, so there is no payout at maturity or surrender. The premium paid for the policy is solely for the cost of the insurance coverage.