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professor190 [17]
3 years ago
8

Shelly $125,000 cash-value policy has a cash value of $18,000. If Shelly dies, her beneficiary receives ____. If she does not di

e but decides to cancel the policy, Shelly will receive ____.
Social Studies
1 answer:
sp2606 [1]3 years ago
7 0

Answer:

$125,000. $18,000.

Explanation:

Shelly's $125,000 cash-value policy has a cash value of $18,000. If Shelly dies, her beneficiary receives <em>$125,000.</em> If she does not die, but decides to cancel the policy, Shelly will receive <em>$18,000</em>. Cash-value life insurance is permanent life insurance, it does not expire on a specific term. A portion of the premium is deposited in a cash-value account, which earns a low rate of interest. If Shelly dies, the beneficiary receives $125,000. If Shelly decides to cancel, she receives the accumulated cash value of $18,000.

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