Marilyn Simms died with a $200,000 life insurance policy. Her husband, Jack, is the primary beneficiary, and their children, Mimi (age 24) and Ann (age 30), are the contingent beneficiaries. All three survive Marilyn. How will the policy proceeds be distributed?
A) $200,000 to Jack
B) $100,000 each to Mimi and Ann
C) $100,000 to Jack and $50,000 each to Mimi and Ann
D) $66,666 each to Jack, Mimi, and Ann
E) $150,000 to Jack and $25,000 each to Mimi and Ann

Question

Quizplus · Accepted Answer

Since Jack, the primary beneficiary, is alive, he will receive the entire $200,000 policy proceeds. Contingent beneficiaries only receive benefits if the primary beneficiary is deceased.

Marilyn Simms Died with a $200,000 Life Insurance Policy