At the moment of Lous death, a life insurance policy was in force on his life in the amount of $250,000. It had a cash surrender value of $60,000. Lou had the power under the policy to change the beneficiary. After Lous death, his wife, Mary received a check from the insurance company.

a. Identify and name the Insured, the Beneficiary, the Owner.

b. Did Lous wife receive a $60,000, $190,000, $250,000, or $310,000? Why?

c. What is the likely purpose of such a policy?