Question

Spring Thyme decided to get her financial affairs in order. She wanted to have a plan in place in the event of her husband's death. When she brought the subject up to her husband, Justin, he thought they should plan on her death as well. They contacted Rusty Spade, a life insurance agent they had met the week before at the bingo parlor. In the course of their interview with Rusty, a number of issues were raised. Justin would be paid $300,000 upon the death of Spring if the Thymes purchased which of the following? A. $600,000 survivorship B. $300,000 survivorship C. $300,000 joint life D. $300,000 second-to-die

Answer 1

Justin would be paid $300,000 upon the death of Spring if the Thymes purchased a $300,000 joint life policy, as stated in option C.

Step-by-step explanation:

The scenario presented involves Spring Thyme and her husband, Justin, planning for their financial future in the event of either spouse's death. The key lies in understanding the type of life insurance policy that would result in Justin receiving $300,000 upon Spring's death. A joint life insurance policy covers two lives, and in this case, the $300,000 joint life policy aligns with Justin receiving the specified amount upon Spring's demise. Other options, such as survivorship policies or second-to-die policies, would typically pay out upon the death of the second insured individual.

Option C is the answer.