Question

S buys a $50,000 whole life policy with a 50,000 accidental death and dismemberment rider. S dies 1 year later of natural causes. How much will the insurer pay the beneficiary?

Answer 1

Answer:

Insurer pay the beneficiary = $50,000

Explanation:

Data provided in the question:

Amount of the policy bought by the S = $50,000

Accidental death cover = 50,000

Now,

When the S dies the insurer will pay the beneficiary the total amount for which is covered under the accidental cover i.e equal to the amount 50,000

hence,

Insurer pay the beneficiary = $50,000