Question

L, aged 50, and L's spouse, 48, have one natural child and one adopted child. They purchase a family policy that covers L's spouse at age 65. A death benefit will NOT be paid in which of the following?

a) If L's spouse dies at age 65
b) If L's spouse dies at age 66
c) If the adopted child dies
d) If the natural child dies

Answer 1

A death benefit from a family policy covering L's spouse will not be paid if either the adopted or natural child dies, as they are not the primary insured unless the policy explicitly covers them.

Step-by-step explanation:

The student's question involves a family policy that covers L's spouse at age 65 and inquires about when a death benefit will not be paid. We are given four scenarios involving the death of L's spouse at age 65, at age 66, the adopted child, and the natural child. Without specific policy details, we can infer generally, that a death benefit is typically paid out upon the death of the insured, so long as the policy is in effect and premiums have been paid. Therefore, the policy would likely pay out in scenarios (a) and (b) if L's spouse dies at age 65 or 66, assuming the policy is active. However, unless the policy explicitly covers children, whether natural or adopted, it would not pay out for scenarios (c) and (d), upon the death of either child, as they are not the primary insured.