Are you having trouble answering the question “A policyowner pays the first annual premium for a $50,000 life insurance policy and dies one month after the policy effective date. Which of these statements is normally true?”? You don’t have to worry about it anymore. Azanswer team is here with the correct answer to your question.
A policyowner pays the first annual premium for a $50,000 life insurance policy and dies one month after the policy effective date. Which of these statements is normally true?
Premium will be refunded with interest and no death benefit paid
Premium received by insurer is considered to be unearned
Proceeds are prorated to 1/12th of the full amount
Beneficiary receives $50,000 income tax-free
Answer: Beneficiary receives $50,000 income tax-free
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