Which type of insurance policy provides a death benefit based solely on the amount of premium paid?

The correct answer is term life insurance. This type of insurance policy is designed to provide coverage for a specific period of time, known as the "term." If the insured person passes away during this term, the policy pays out a predetermined death benefit to the beneficiaries based solely on the premiums that have been paid.

Term life insurance focuses on providing a straightforward death benefit without any cash value accumulation or investment component. This means that the payout is directly linked to the premium payments, and if the policyholder outlives the term, the coverage expires without any return of premiums, which emphasizes its role as a pure risk protection product.

In contrast, whole life, universal life, and variable life insurance policies incorporate additional elements, such as cash value accumulation, which complicates the relationship between premiums paid and the death benefit. These types of policies are designed for long-term insurance coverage and often include investment opportunities that can grow the cash value over time, but they do not provide a death benefit solely on the amount of premium paid like term life insurance does.