Which of the following best describes a "death benefit"?

The term "death benefit" refers specifically to the amount that an insurance company pays to the designated beneficiary upon the death of the insured individual. This payment serves as financial protection, intended to help cover expenses, replace lost income, and provide financial support to the deceased's dependents.

In the context of life insurance, the death benefit is a key feature, designed to ensure that the beneficiaries receive a predetermined sum that reflects the insured's coverage amount. It serves a crucial role in financial planning, allowing families to maintain their standard of living despite the loss of an income provider.

The other options misrepresent aspects of insurance or financial benefits: health-related expenses are not covered in the death benefit; cumulative interest from premiums is typically considered in the context of whole life policies but not as a death benefit; and a temporary payout during critical illness relates to different types of policies such as critical illness insurance rather than the concept of death benefits in life insurance.