Question

Beverly Rogers owns a permanent life insurance policy with a death benefit of $200,000. She

has also added to it an accelerated benefits rider with a 25% clause. The policy also includes an
accidental death rider for $500,000. If Beverly is diagnosed with terminal cancer and receives the
maximum amount from the appropriate rider, what will be paid to her beneficiary following her
death?
A. $50,000
B. $150,000
C. $175,000
D. $200,000

Answer 1

Beverly's beneficiary will receive $200,000 following her death.

Step-by-step explanation:

To determine the amount that will be paid to Beverly's beneficiary following her death, we need to calculate the combined death benefit from her permanent life insurance policy and the accelerated benefits rider. The accelerated benefits rider gives Beverly the option to receive a percentage of her death benefit if she is diagnosed with a terminal illness. In this case, the rider has a 25% clause, so Beverly will receive 25% of the $200,000 death benefit, which is $50,000.

Adding the amount from the accelerated benefits rider to the original death benefit, Beverly's beneficiary will receive a total of $200,000 + $50,000 = $250,000 following her death.

Therefore, the correct answer is D. $200,000.