How Much Will Life Insurance Payout? 
In most cases , a life insurance policy will pay out the full death benefit at the insured 's death . there could be a few adjustments however . If there is an outstanding loan on the policy , the loan balance will be deducted from the death benefit . This assumes you do not have a `` graded benefit '' policy , which will pay less than the full benefit if death occurs in the first couple of years . 