Maxwell Simmons has a life insurance policy with a face value of $250,000 and a cash...

Maxwell Simmons has a life insurance policy with a face value of $250,000 and a cash value of $77,000. Maxwell was killed in an auto accident shortly after borrowing $56,000 from his policy. Assuming interest had been paid but no principal was repaid, how much would Maxwell's beneficiary receive?

A. $194,000

B. $173,000

C. $250,000

D.$117,000

Expert Solution

$250,000

The beneficiary will receive the face value of the policy.Debts of the deceased are not inhenrited by the beneficiary.

jeff jeffy answered 2 years ago

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