What can be paid as a net payoff lump sum if the insured becomes totally and permanently disabled?

When an individual becomes totally and permanently disabled, the insurance policy typically provides a net payoff in the form of benefits. These benefits are designed to financially support the insured during a critical time when they can no longer work due to their disability. This lump sum can help cover various living expenses, loss of income, or other financial obligations that arise from the inability to earn a livelihood.

Other options such as a premium refund or medical expenses are not structured to provide the insured with the immediate financial relief needed in the event of total and permanent disability. A premium refund simply returns premiums paid without offering additional benefits, while medical expenses, though important, are specific expenses and not a lump sum payout. Additionally, a loan balance would pertain to any debts against the policy rather than providing a direct benefit to the insured. Therefore, the most appropriate choice for a net payoff in the case of total and permanent disability is the benefits provided under the insurance policy.