In life policies, the time when the face value is paid out is called what?

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Multiple Choice

In life policies, the time when the face value is paid out is called what?

Policy maturity is the point in time when a life policy pays out its face amount if the insured is still alive. It marks the end of the policy term, at which the insurer settles the contract by delivering the stated amount. In many policies, especially endowment types, the design is to pay the face value at this maturity date if the insured survives; if death occurs earlier, the policy typically pays a death benefit instead. The term endowment refers to the policy type, while a claim is simply the process of requesting payment. So the payout timing described here aligns with policy maturity.

Policy maturity is the point in time when a life policy pays out its face amount if the insured is still alive. It marks the end of the policy term, at which the insurer settles the contract by delivering the stated amount. In many policies, especially endowment types, the design is to pay the face value at this maturity date if the insured survives; if death occurs earlier, the policy typically pays a death benefit instead. The term endowment refers to the policy type, while a claim is simply the process of requesting payment. So the payout timing described here aligns with policy maturity.

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