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4 July, 19:29

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

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Answers (1)
  1. 4 July, 20:54
    0
    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
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