Horatio has an individual term-10 life insurance policy with a death benefit of $250,000, which was purchased 5 years ago. His intention was that it would cover his mortgage if he was to pass away prematurely. Horatio's wife Nancy is the beneficiary and their mortgage now has a balance of $225,000. If Horatio were to die today, which of the following is CORRECT? 

 a) The financial institution that holds his mortgage would receive the $250,000 death benefit. 

b) The financial institution that holds his mortgage would receive $225,000 of the death benefit and the remaining $25,000 would be paid directly to Nancy.

c) Nancy would receive a $225,000 death benefit. 

d) Nancy would receive a $250,000 death benefit.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below d Nancy would re... View the full answer