Question

rilyn Simms died with a $200,000 life insurance policy. Her husband, Jack, was the primary beneficiary and their children, Mimi (age 24) and Ann (age 30), were the contingent beneficiaries. All three survived Marilyn. How would the policy proceeds be distributed?

Answer 1

A)

In Marilyn's case, she had a life insurance policy of $200000.she added her husband jack as a primary beneficiary and her children Mimi and Ann as a contingent beneficiary.

The primary beneficiary will get half of the amount of the policy

i.e $100000

The Contingent beneficiary will get the quarter of the amount of the policy, so there are 2 children(Mimi, Ann) they will get the amount of 2 quarters

i.e Mimi - 50000

Ann - 50000

Therefore the policy proceeds are distributed to jack the amount of $100000 and each of the children Mimi and Ann of $50000