Ace the Connecticut Life Producer Exam 2026 – Unlock Your Success and Thrive!

A death benefit in a life insurance policy refers to the amount of money that is paid out to the beneficiaries when the insured individual passes away. This benefit is designed to provide financial support to the beneficiaries, helping them cover expenses such as funeral costs, debts, or to maintain their standard of living after the loss. The death benefit is a primary feature of life insurance, and its value is determined at the time the policy is issued, usually being a fixed amount specified in the policy agreement.

In contrast, the other options represent different aspects of life insurance that do not relate to the payment made upon the death of the insured. The payment to keep the policy active pertains to premiums, while the total investment into the policy reflects the amounts paid by the policyholder over time, which can vary and does not define the death benefit. Lastly, the cost deducted for administrative fees refers to charges taken from the policy's cash value or premium payments, which are related to the maintenance of the policy rather than the payout upon death.