Walter owns a whole-life insurance policy worth $60,100 that directs the insurance company to pay the...
Walter owns a whole-life insurance policy worth $60,100 that directs the insurance company to pay the beneficiary $335,000 on Walter’s death. Walter pays the annual premiums and has the power to designate the beneficiary of the policy (it is currently his son, James). What value of the policy, if any, will be included in Walter’s estate upon his death?
Value of Policy:
Homework Answers
The total Maturity amount upon death of Walter : 335,000 minus the amount of the policy : 60,100, so the total value of the policy is 335,000-60,100 = 274,900
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