Mike had a $100,000 whole life insurance policy with a $10,000 loan outstanding when he died.The policy had a $20,000 cash value prior to the loan.How much will his beneficiary receive following Mike's death?

Question

Quizplus · Accepted Answer

The beneficiary will receive the face value of the policy ($100,000) minus the outstanding loan ($10,000), resulting in $90,000. The cash value is not relevant to the death benefit payout.

Mike Had a $100,000 Whole Life Insurance Policy with a $10,000