The term "Death Benefit Payout Option" refers to a provision in life insurance policies that allows beneficiaries to choose how they would like to receive their death benefits. This can include options such as receiving a lump sum payment, having the funds placed into an account where it earns interest over time or even having payments made directly to them on a regular basis (such as monthly). The choice of payout option will depend on the specific policy and insurance company, but the goal is typically to provide flexibility for beneficiaries in how they receive their benefits.