Question

Ben has a $200,000 whole life policy with a $50,000 AD&D rider. Also attached is an

accelerated benefits rider. Later Ben becomes terminally ill and receives $25,000 from the
policy. Six months later he dies. What will be paid?
A. The principal sum
B. $150,000
C. $175,000
D. $225,000

Answer 1

The total payout from the policy will be $225,000 (Option D).

Step-by-step explanation:

Based on the information provided, Ben has a $200,000 whole life policy with a $50,000 AD&D rider and an accelerated benefits rider. When he becomes terminally ill, he receives $25,000 from the policy.

Six months later, he dies. The question is asking what will be paid out from the policy.

In this case, the accelerated benefits rider allows Ben to receive a portion of the death benefit while he is still alive and terminally ill. So, the $25,000 he received is part of the payout.

When he eventually dies, the full death benefit of $200,000 plus the $25,000 he already received will be paid out.

Therefore, the total payout will be $225,000 (Option D).