What are the benefits defined in a life insurance policy commonly referred to as?

The benefits defined in a life insurance policy are commonly referred to as the insuring clause. This clause outlines the specific benefits that an insurance company agrees to provide in exchange for the premiums paid. It details the conditions under which these benefits are paid, typically in the event of the policyholder's death, but it can also include coverage for other events such as terminal illness or accidental death, depending on the policy terms.

The insuring clause is fundamental because it establishes the contractual obligations of the insurer and serves as a clear statement of what the policyholder can expect. Understanding this aspect is crucial for policyholders as it defines the primary purpose of the insurance coverage.

In contrast, policy dividends relate to returns on the policyholder's premium for participating policies, which are not guaranteed but depend on the insurer's financial performance. Contractual benefits refer more generally to the entire suite of coverage and services offered by a policy, rather than specifically the defined benefits. Guaranteed benefits, while they indicate features of some policies, are typically associated with products like guaranteed universal life or specific riders rather than the overall defining clause of a policy.