Mike Purchased a Whole Life Policy with a Face Value

question 23

Multiple Choice

Mike purchased a whole life policy with a face value of $1,000,000 and dies several years later.At the time of his death,Mike has: paid a total of $12,000 in premiums;accumulated $25,000 in cash value;received a total of $5,000 in policy dividends;and has a $10,000 policy loan outstanding.If Mike's beneficiaries elect to receive a lump-sum distribution of death benefits,how much will it be?

• A) $1,025,000
• B) $1,015,000
• C) $1,000,000
• D) $ 990,000
• E) $ 985,000

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Definitions:

Childhood-Onset

The initiation or appearance of symptoms or conditions during the early years of a person's life.

Adult-Onset

Conditions or diseases that begin in adulthood, as opposed to those that are congenital or that develop during childhood.

Anxiety Disorders

A group of mental health disorders characterized by significant fear or anxiety that interferes with daily activities.

Mood Disorders

Psychological disorders characterized by the elevation or lowering of a person's mood, such as depression or bipolar disorder.