Final answer:
Hilda, the sole beneficiary, will receive the full face value of Zelda's life insurance policy, which is $1,000,000, because Zelda passed away within the term of the policy.
Step-by-step explanation:
Zelda purchases a 20-year-term life insurance policy with a face value of $1,000,000. She must pay $20 a month to maintain coverage. Sadly, she passes away just 12 months into her term. The question posed is: How much will Hilda, the sole beneficiary, receive?
The nature of term life insurance is such that it provides coverage for a specific period or "term". If the insured individual passes away during this term, the policy will pay out the face value amount to the beneficiaries. Given that Zelda has purchased a term life insurance policy and has passed away within the term, Hilda, as the sole beneficiary, will receive the face value amount of the policy. Therefore, the correct answer to the question is: a. $1,000,000The monthly premiums that Zelda paid were to keep the policy active, and they do not affect the face value that will be paid out upon her death.