Alex Taylor just became a partner at a law practice. He is funding his retirement plan with

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Alex Taylor just became a partner at a law practice. He is funding his retirement plan with the maximum contributions allowed, as well as saving 10 percent of his gross income in an after-tax investment account. He likes the idea of an additional savings program. Alex has decided to purchase a universal life insurance product with a \($500,000\) death benefit. In order to save a greater amount (pay a higher premium), he elected death benefit option B. Alex has died unexpectedly. The cash values of the universal life insurance product have grown to \($50,000\).

His mother is the beneficiary of his life insurance contract.

How much will she receive as a death benefit?

A. $450,000.

B. $500,000.

C. $550,000.

D. $600,000.


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Essentials Of Personal Financial Planning

ISBN: 9781945498237

1st Edition

Authors: Susan M. Tillery, Thomas N. Tillery

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