Question

"The insured in a $25,000 life insurance policy died of a heart attack. Since the policy had a double indemnity provision, the policy beneficiary received

A) 12500
B) 50000
C) 25000
D) nothing"

Answer 1

The beneficiary received $50,000 from the life insurance policy due to the double indemnity provision that doubled the original amount of $25,000.

Step-by-step explanation:

The student has asked what amount the policy beneficiary received from a life insurance policy with a double indemnity provision, when the insured died of a heart attack.

Under a double indemnity provision, the benefit paid out upon the insured's death due to an accident or specified events, such as a heart attack, is doubled. In this case, since the original policy was worth $25,000, the presence of the double indemnity provision would result in the payment being doubled to $50,000. Therefore, the correct answer is B) $50,000.