Question

Marilyn Simms died with a $200,000 life insurance policy. Her husband, Jack, is the primary beneficiary, and their children, Mimi (age 24) and Ann (age 30), are the contingent beneficiaries. All three survive Marilyn. How will the policy proceeds be distributed?A) $200,000 to Jack
B) $100,000 each to Mimi and Ann
C) $100,000 to Jack and $50,000 each to Mimi and Ann
D) $66,666 each to Jack, Mimi, and Ann
E) $150,000 to Jack and $25,000 each to Mimi and Ann

Answer 1

Answer:

A) $200,000 to Jack

Explanation:

Jack is the primary beneficiary to his late wife's life insurance policy and since he is still alive, so he should get the whole $200,000.

His daughters, Mimi and Ann, are the contingent beneficiaries. That means that in case Jack had died before his wife or he was incapacitated for some reason, then they would have become the beneficiaries of the insurance policy (and each would have received $100,000).