rilyn Simms died with a $200,000 life insurance policy. Her husband, Jack, was the primary beneficiary...

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?

Solutions

Expert Solution

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

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Tonya purchased a life insurance policy on her own life. Her husband Donald is the beneficiary of the policy.

Question 13 Tonya purchased a life insurance policy on her own life. Her husband Donald is the beneficiary of the policy. Which of the following is not a necessary legal element of the contract?1)Offer and acceptance.2)Legal competency of all parties.3)Listed beneficiary.4)Consideration.Question 14 Which of the following statements is/are correct?1. Insurance companies are concerned with morale hazard as people who have insurance are not as concerned about protecting their own property.2. Intentional acts of an insured resulting in a loss are generally insurable.1)1...

Linda’s husband dies, naming her the sole beneficiary of a $500,000 life insurance policy. The insurance...

Linda’s husband dies, naming her the sole beneficiary of a $500,000 life insurance policy. The insurance company informs her that she has two options: (1) she can receive the entire $500,000 in one lump-sum payment or (2) she can receive annual installments of $58,000 for 10 years a. How much does Linda include in gross income if she takes the lump- sum payment? b. How much does Linda include in gross income each year if she elects the installment payments?...

Edie died last month owning a whole life insurance policy on her husband Rob’s life. The...

Edie died last month owning a whole life insurance policy on her husband Rob’s life. The death benefit amount was $500,000 and the insurance company valued the policy at $80,000. Edie was the beneficiary of the policy and her son Manny was the contingent owner. What amount is included in Edie’s estate? Is the policy part of Edie’s probate estate? Explain your answers.

Sara Wald died, leaving to her husband Benno an insurance policy contract that provides that the...

Sara Wald died, leaving to her husband Benno an insurance policy contract that provides that the beneficiary (Benno) can choose any one of the following options: a) 55,000 immediate cash b) 4,000 every 3 months payable at the end of each quarter for 5 years c) 18,000 immediate cash and 1,800 every 3 months for 10 years, payable at the beginning of each 3-month period d) 4,000 every 3 months for 3 years and 1,500 each quarter for the following...

Julia Baker died, leaving to her husband Henry an insurance policy contract that provides that the...

Julia Baker died, leaving to her husband Henry an insurance policy contract that provides that the beneficiary (Henry) can choose any one of the following four options. Money is worth 2.50% per quarter, compounded quarterly. Compute Present value if: Click here to view factor tables Correct answer. (a) Your answer is correct. (a) $56,770 immediate cash. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) (b) $4,200 every 3 months payable...

Sara Wald died, leaving to her husband Benno an insurance policy contract that provides that the...

Julia Baker died, leaving to her husband Henry an insurance policy contract that provides that the...

Julia Baker died, leaving to her husband Henry an insurance policy contract that provides that the beneficiary (Henry) can choose any one of the following four options. Money is worth 2.50% per quarter, compounded quarterly. Compute Present value if: Click here to view factor tables Correct answer. Your answer is correct. (a) $55,260 immediate cash. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Present value $Entry field with correct answer...

Ellie purchases an insurance policy on her life and names her brother, Jason, as the beneficiary....

Ellie purchases an insurance policy on her life and names her brother, Jason, as the beneficiary. Ellie pays $56,750 in premiums for the policy during her life. When she dies, Jason collects the insurance proceeds of $851,250. As a result, Jason reports gross income of?

(Analysis of Alternatives) Julia Baker died, leaving to her husband Brent an insurance policy contract that...

(Analysis of Alternatives) Julia Baker died, leaving to her husband Brent an insurance policy contract that provides that the beneficiary (Brent) can choose any one of the following four options a. €55,000 immediate cash. b. €4,000 every 3 months payable at the end of each quarter for 5 years. c. €18,000 immediate cash and $1,800 every 3 months for 10 years, payable at the beginning of each 3-month period. d. €4,000 every 3 months for 3 years and $1,500 each...

1. Mary’s husband Ben died during the current year. She was the beneficiary of his life...

1. Mary’s husband Ben died during the current year. She was the beneficiary of his life insurance policy in the face amount of $300,000. Because Mary likes to go on expensive vacations, she is concerned that she will spend all the money in a few months. She decides to leave the money with the insurance company and will take the money out over a period of ten years. In the current year, Mary receives a check for $34,000 from the...

Subjects