Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

When Flynn was 43 years old, he bought a $500,000 20-year term life insurance policy with an annual premium of $470. Ten years later when

When Flynn was 43 years old, he bought a $500,000 20-year term life insurance policy with an annual premium of $470. Ten years later when he died, the insurance company discovered that his gender had been entered as female when the policy was issued. The annual premiums he had paid were lower than it should have been as premiums for a 43-year-old male would have been $510. Ignoring any annual policy fees included in the premium, how much death benefit will the beneficiary receive?

Step by Step Solution

3.44 Rating (157 Votes )

There are 3 Steps involved in it

Step: 1

The death benefit payable to the beneficiary will be based on the face value of the policy which is ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Theory

Authors: William R. Scott

7th edition

132984660, 978-0132984669

More Books

Students also viewed these Accounting questions