Question

What is the face amount of a $50,000 graded death benefit life insurance policy when the policy is issued?

A. $0.
B. $50,000.
C. Under $50,000 initially, but decreases annually over time.
D. Under $50,000 initially, but increases over time.

Answer 1

The face amount of a $50,000 graded death benefit life insurance policy when the policy is issued is $50,000. The correct option is B.

Step-by-step explanation:

The face amount of a $50,000 graded death benefit life insurance policy when the policy is issued is B. $50,000.

A graded death benefit policy is a type of life insurance policy where the death benefit amount changes over time.

In this case, the policy starts with a face amount of $50,000, and the amount may increase or decrease over time based on the terms of the policy. However, at the time of issuance, the policy has a face amount of $50,000.