What typically triggers a death benefit payment in a life insurance policy?

The payment of a death benefit in a life insurance policy is typically triggered by the insured's death. This is the fundamental purpose of life insurance, providing financial support to beneficiaries upon the demise of the insured individual. When the policyholder passes away while the policy is in force, the insurer is obligated to pay out the agreed-upon amount to the named beneficiaries.

In contrast, a policy lapse due to payment default does not trigger a death benefit because the coverage is no longer active, meaning that the insurer isn't liable for any benefits. Similarly, reaching retirement age does not activate a death benefit; rather, it may be a point for considering other options such as converting the policy or reviewing retirement income needs. Lastly, converting a life insurance policy into an annuity is a different financial strategy that may provide income during retirement but does not directly involve triggering a death benefit payment.