Well, the obvious answer is "when the insured dies". However, life insurance companies have begun offering living benefits from their products. Many allow an insured who has been diagnosed with a terminal illness to use their death benefit during their lifetime. This allows the insured and their family to use that money to help with medical bills, final expense planning, and any other reason. The insurance company knows that they're eventually going to pay the death benefit and allowing the insured to use it during their life helps their family.
I'm assuming the question is regarding the death benefit and not the cash value of a life insurance policy. The cash value is available anytime through withdrawals, loans, or structured payouts. Keep in mind that these will impact the death benefit by either reducing it or eliminating it altogether. be sure to consult with an agent you can trust and explore all your options before making a decision that will impact the death benefit.
Life insurance policies pay the face amount when the person who is insured by the policy dies, or when the policy matures. If the money is paid upon death, it goes to the beneficiary. If it is paid upon policy maturity, the money goes to the owner of the policy.
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I'm assuming the question is regarding the death benefit and not the cash value of a life insurance policy. The cash value is available anytime through withdrawals, loans, or structured payouts. Keep in mind that these will impact the death benefit by either reducing it or eliminating it altogether. be sure to consult with an agent you can trust and explore all your options before making a decision that will impact the death benefit.