Amy Purchased a Life Insurance Policy with the Intent of Committing

question 54

Multiple Choice

Amy purchased a life insurance policy with the intent of committing suicide to pay all the debts that were burdening her family.If she commits suicide 9 months after the policy is purchased,and the insurer is able to prove that her death was a suicide,how much will be paid by the insurance company?

• A)nothing,because the policy is void
• B)the premiums paid for the policy will be refunded
• C)the policy's cash value
• D)the face value of the policy

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Definitions:

Return on Investment (ROI)

A measure of the profitability of an investment, calculated as the net profit of the investment divided by the initial cost.

Last Year's

Refers to the previous calendar or fiscal year relative to the current one.

Combined ROI

A metric that aggregates the return on investment (ROI) from multiple projects or investments to assess overall performance.

Investment Opportunity

A potential investment that could yield financial returns, often evaluated for its risk-reward profile.