Final answer:
Luke's family is the beneficiary, which means they are the designated recipients of the insurance policy's payout upon Luke's death.
Step-by-step explanation:
In the context of the insurance policy that Luke's family had, the term that describes them following Luke's death is beneficiary. A beneficiary is a person or entity designated in an insurance policy to receive the benefits, such as a lump sum payment, from the policy upon the occurrence of the event insured against, such as the policyholder's death. This term is often brought up in discussions of life insurance policies, where the beneficiaries receive the policy proceeds after the insured individual's passing.
It's important to understand these terms, as they represent the parties and concepts involved in an insurance agreement.The correct answer is a) Beneficiary. In insurance, a beneficiary is a person or entity designated to receive a sum of money or other benefits after the death of the insured person. In this case, Luke's family received the lump sum from the insurance company after Luke died.