When is the death benefit of a Whole Life policy typically paid out?

The death benefit of a Whole Life policy is typically paid out when the insured dies or at maturity of the policy. This is a foundational concept in life insurance. Whole Life insurance is designed to provide coverage for the entire life of the insured, which means that as long as the premiums are paid, the policy remains in force until the death of the insured. Upon death, the beneficiaries would receive the death benefit, which is the amount specified in the policy. In some cases, if the insured lives to the maturity date (usually age 100 in traditional whole life policies), the policy will pay out a benefit to the policyholder, effectively the cash value accumulated.

The other options do not align with how whole life policies function. A death benefit is not paid at the time of policy purchase or simply at the discretion of the policyholder, and it does not rely on a set term like 10 years, as whole life policies are designed to cover the insured for their entire lifetime.