Maxwell has a life insurance policy with a face value of $250,000 and a cash value of $77,000.Maxwell was killed in an auto accident shortly after borrowing $56,000 from this policy.Assuming interest had been paid but no principal was repaid,how much would Maxwell's beneficiary receive?

Question

Quizplus · Accepted Answer

The beneficiary would receive the face value of the policy, which is $250,000, minus the outstanding loan balance, which is $56,000, and the cash value, which is $77,000.

$250,000 - $56,000 - $77,000 = $117,000

Therefore, the beneficiary would receive $117,000.

Maxwell Has a Life Insurance Policy with a Face Value