Life insurance pays out when the insured person passes away, and the policy is in force at the time of their death. The beneficiaries named in the policy will receive the death benefit, which is the sum of money specified in the policy. It's important to note that the cause of death usually doesn't affect the payout, unless the policy has specific exclusions for certain causes of death. Additionally, some policies may have a waiting period before they will pay out, especially in the case of suicide. It's crucial to review the policy terms and conditions to understand the specific circumstances under which the payout will occur. Life insurance may also pay out in the event of terminal illness or critical illness, depending on the policy's terms and conditions. It's essential to keep the policy in good standing by paying the premiums on time to ensure that the coverage remains active. If the policy lapses due to non-payment, the coverage will cease, and the beneficiaries will not receive the death benefit. It's advisable to regularly review and update the beneficiaries listed on the policy to ensure that the intended individuals will receive the payout. In some cases, life insurance policies may also have cash value that can be accessed during the insured person's lifetime, either through withdrawals or policy loans. This feature varies depending on the type of policy, such as whole life or universal life insurance. Overall, understanding the terms and conditions of the life insurance policy is crucial to ensure that the intended beneficiaries receive the financial protection provided by the policy.