If the insured person dies during the term of the term life insurance policy, while the life insurance is still "in Force", the beneficiary receives the death benefit - the proceeds form the term life policy, usually free from any federal income tax.
The payout may be available in one of several different options, including a lump sum check sent to the beneficiary, a checkbook whereby the beneficiary could write checks from the total death benefit, or monthly or annual installments sent to the beneficiary.
Upon the death of the insured, the beneficiary contacts the life insurance company and they advise the beneficiary what information is required to complete the payout of the death benefit, including an original death certificate of the insured person.
Learn more about how term life works.