Asked by Jessica Braga on Jun 20, 2024
Verified
Nancy bought a 20-year term life insurance policy with a face value of $200,000.Her monthly premium is $66.She dies after 2 years.Her beneficiaries will receive $200,000 ÷ 2 or $100,000.
Term Life Insurance
A type of life insurance policy that provides coverage for a specified period ('term'), offering a death benefit if the insurer dies during that term.
Premium
The amount paid for an insurance policy, often on a monthly, quarterly, or annual basis.
Beneficiaries
Individuals or entities entitled to receive benefits or proceeds from an insurance policy, will, or trust.
- Familiarize oneself with the essential notions of insurance policies, with an emphasis on term life insurance, and analyze the financial ramifications for both the insurer and insured.
Verified Answer
SN
Simon NdunguJun 23, 2024
Final Answer :
False
Explanation :
The beneficiaries will receive the full face value of the policy, which is $200,000, regardless of how long Nancy had been paying premiums or how long she lived.
Learning Objectives
- Familiarize oneself with the essential notions of insurance policies, with an emphasis on term life insurance, and analyze the financial ramifications for both the insurer and insured.
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