When is life insurance typically paid out in the context of accident and health coverage?

Life insurance is typically designed to provide a financial benefit upon the death of the insured. This means that if the individual covered by the policy passes away, the beneficiaries named in the policy receive a death benefit, which can help cover expenses such as funeral costs, debts, and provide financial support for dependents. This structure distinguishes life insurance from accident and health coverage, which focuses more on providing benefits for medical expenses and other health-related issues during the insured's life.

In contrast, the other scenarios do not align with the traditional function of life insurance. Payment upon reaching retirement age is more related to retirement benefits rather than life insurance. The option for payment in the event of a patient's recovery pertains to health coverage that addresses medical expenses, not life insurance. Lastly, missing a premium payment typically results in a lapse of coverage rather than a payout. Thus, the point at which life insurance is realized is distinctly linked to the death of the insured.