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:

Activities Of Daily Living (ADLs)

Basic tasks essential for day-to-day self-care, such as eating, bathing, dressing, toileting, walking, and transferring.

Nursing Assistive Personnel

Refers to healthcare workers, such as certified nursing assistants (CNAs), who provide basic care under the supervision of nursing staff.

Transfer

The process of moving a patient or resident from one location to another, or from one surface to another, within healthcare settings.

Gait Belt

A belt-like device used by healthcare professionals to assist patients who are partially immobilized or need help in moving, such as during transfers or ambulation.