Tara had a life insurance policy with a face value of $150,000.At the time of her death,the policy had a cash value of $33,000,an outstanding loan of $4,000,and earned but unpaid dividends of $2,000.Assuming this is a typical policy,what death benefit would be paid to Tara's beneficiary?

Question

Quizplus · Accepted Answer

The death benefit is calculated as the face value of the policy ($150,000) minus any outstanding loans ($4,000) plus any earned but unpaid dividends ($2,000). Therefore, $150,000 - $4,000 + $2,000 = $148,000.

Tara Had a Life Insurance Policy with a Face Value