Question

Julie has been disabled for three years. The insurance company has waived $4,000 worth of premiums on her $100,000 life insurance policy. If Julie dies, how much will her beneficiary receive?

Answer 1

The beneficiary will receive $100,000, which is the face value of Julie's life insurance policy, regardless of the premium waiver. Therefore, the beneficiary will receive $100,000, which is the face value of the policy.

Step-by-step explanation:

If Julie dies, the beneficiary will receive the full amount of her life insurance policy.

The fact that the insurance company has waived $4,000 worth of premiums has no effect on the policy's payout upon death.

Therefore, the beneficiary will receive $100,000, which is the face value of the policy.