Question

John purchases a life insurance policy on his wife Betty where he pays the premium and he will receive the life insurance money when she dies. John is both the _____ and the _____ who will receive the ________ upon the death of Betty, the ______.
A) policy owner, insured, face amount, beneficiary
b) beneficiary, premium payer, face amount, policy holder
c) policy owner, beneficiary, face amount, insured
d) insured, beneficiary, money, policyholder
e) none of the above

Answer 1

Answer: c) policy owner, beneficiary, face amount, insured

Explanation: John is the policy owner because he initiated it, he bought the life insurance,

To insure the life of his wife Betty. This automatically makes john the beneficiary of the life insurance once his wife Betty died,

leaving John with the option to claiming the face amount due once Betty the insured had died.

Answer 2

Answer:

The Option that best answers the question is "C"

Explanation:

policy owner; beneficiary; face amount; insured

Death can have a major financial impact on those left behind, particularly if there is a mortgage to pay, credit card debt, or an outstanding auto loan. Even final expenses can be a burden.

Life Insurance policies helps cover for this financial burden and eventualities