Life Insurance policies typically pay out a lump sum of money, known as the death benefit, to the designated beneficiary or beneficiaries upon the death of the insured. The beneficiary can use this money to cover funeral expenses, outstanding debts, daily living expenses, or any other financial needs. The process of claiming the death benefit usually involves the beneficiary submitting a claim form, along with a certified copy of the death certificate, to the insurance company. Once the claim is approved, the insurer disburses the death benefit to the beneficiary. It's important for the policyholder to keep their beneficiary information up to date to ensure a smooth payout process. Additionally, some policies may have specific conditions or exclusions that could affect the payout, so it's crucial for the beneficiary to review the policy terms and contact the insurance company for guidance if needed.