Final answer:
In a universal life policy with Option B, the actual death benefit increases with the cash value. With an initial face amount of $60,000 and cash value of $15,000, the death benefit would be $75,000.
The correct option is C.
Step-by-step explanation:
The subject of this question revolves around a universal life insurance policy with Option B (increasing death benefit) and its impact on the actual death benefit when the cash value changes. Universal life insurance provides both a death benefit and a cash value component, which can be used by the policyholder.
When W has selected Option B in a universal life policy with an initial face amount of $60,000 and the cash value rises to $15,000, the actual death benefit will not decrease; rather, it increases with the cash value. Considering Option B's increasing death benefit characteristic, we add the cash value to the initial face amount to determine the death benefit. Therefore, the actual death benefit would be:
$60,000 (initial face amount) + $15,000 (cash value) = $75,000
So, the correct answer to the question is C. $75,000.