What is the term for the amount that the insurer has to pay to beneficiaries upon the insured's death?

The correct term for the amount that the insurer is obligated to pay to beneficiaries upon the insured's death is known as the death benefit. This amount represents the face value of the life insurance policy and is the primary purpose of life insurance—to provide financial support to the beneficiaries after the policyholder passes away.

The death benefit is an essential characteristic of life insurance policies, ensuring that dependents or loved ones are provided for in the event of the insured's death. It is generally paid out as a lump sum, although some policies may offer options for different payout structures, such as annuities.

In contrast, cash value refers to a savings component found in certain types of permanent life insurance policies, which accumulates over time and can be accessed by the policyholder during their lifetime. Premium payment is the amount paid by the policyholder to keep the policy active, while adjustment value is not a standard term used in life insurance contexts. These distinctions highlight why death benefit accurately identifies the sum allocated specifically for beneficiaries after the insured's death.