Which type of insurance provides a death benefit to beneficiaries upon the insured's death?

Life insurance is specifically designed to provide financial protection for beneficiaries in the event of the insured individual's death. When a policyholder passes away, their life insurance policy pays out a predetermined death benefit to the named beneficiaries. This benefit can help cover various expenses, such as funeral costs, outstanding debts, and ongoing living expenses, ensuring that the financial burden does not fall on the surviving family members.

In contrast, adverse selection refers to a scenario where individuals with a higher risk of filing claims are more likely to seek insurance, which can lead to higher costs for insurers. Lapse pertains to the situation where a policyholder fails to pay premiums, resulting in the termination of their insurance coverage. The term “insurance” is too general and encompasses various types of coverage beyond just life insurance, such as health, auto, and home insurance, which do not provide death benefits specifically tied to the policyholder's death.

Thus, life insurance distinctly focuses on the provision of a death benefit, making it the correct choice in this context.