An insured had a $10,000 term life policy. The annual premium of $200 was due on February 1; however, the insured failed to pay the premium. He died on February 28. How much would the beneficiary receive from the policy?

a) $0

b) $200

c) $9,800

d) $10,000

Question

Business

Iris Copeland

6 April, 07:10

An insured had a $10,000 term life policy. The annual premium of $200 was due on February 1; however, the insured failed to pay the premium. He died on February 28. How much would the beneficiary receive from the policy?

a) $0

b) $200

c) $9,800

d) $10,000

+4

Answers (1)

Know the Answer?

Josiah Adkins · Answer 1

C) $9,800

Explanation:

Sum Insured = $10,000

Premium Payable = $200

Due Date of Premium = 1st February

Death of Insured occurred on=28 February

As the death occurred after date of premium so our answer will be as follows

Net receivable = Sum insured-Premium payable by insured

net receivable=$10,000-$200

Net Receivable=$9,800

An insured had a $10,000 term life policy. The annual premium of $200 was due on February 1; however, the insured failed to pay the premium. He died on February 28. How much would the beneficiary receive from the policy?a) $0b) $200c) $9,800d) $10,000

An insured had a $10,000 term life policy. The annual premium of $200 was due on February 1; however, the insured failed to pay the premium. He died on February 28. How much would the beneficiary receive from the policy?

a) $0

b) $200

c) $9,800

d) $10,000