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 Dallas' beneficiary:

Question

Quizplus · Accepted Answer

When a policyholder takes out a loan against their life insurance policy's cash value, the outstanding amount is deducted from the death benefit paid out to the beneficiary. Therefore, Dallas' beneficiary will receive the face value of the policy ($150,000) minus the amount Dallas still owed on the loan at the time of her death.

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