Dallas took out a loan against her life insurance policy's cash value. She died before the loan could be repaid. The face value of the policy was $150,000. The insurer will pay Dallass beneficiary:

Question

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When Dallas took out the loan against her life insurance policy's cash value, she essentially decreased the death benefit from $150,000 to a lower amount. The beneficiary will receive the face value of the policy ($150,000) minus any outstanding loans or debts owed against the policy. Therefore, the beneficiary will receive $150,000 minus the amount Dallas owed on the loan.

Dallas Took Out a Loan Against Her Life Insurance Policy's