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31 January, 18:53

S buys a $50,000 whole life policy with a 50,000 accidental death and dismemberment rider. S dies 1 year later of natural causes. How much will the insurer pay the beneficiary?

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  1. 31 January, 22:51
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    Insurer pay the beneficiary = $50,000

    Explanation:

    Data provided in the question:

    Amount of the policy bought by the S = $50,000

    Accidental death cover = 50,000

    Now,

    When the S dies the insurer will pay the beneficiary the total amount for which is covered under the accidental cover i. e equal to the amount 50,000

    hence,

    Insurer pay the beneficiary = $50,000
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