Before he died, an annuitant had received $12,500 in monthly benefits from his $25,000 straight life annuity. He was also the insured under a $50,000 paid-up whole life policy that named his wife as primary beneficiary. Considering both contracts, how much will the annuitant's spouse receive in benefits?

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1 December, 22:50

Before he died, an annuitant had received $12,500 in monthly benefits from his $25,000 straight life annuity. He was also the insured under a $50,000 paid-up whole life policy that named his wife as primary beneficiary. Considering both contracts, how much will the annuitant's spouse receive in benefits?

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Lauren Preston · Answer 1

The answer is: $50,000

Explanation:

The annuitant's widow can claim the full $50,000 of the life insurance policy since she was named as primary beneficiary.

But she can not claim any money from the $12,500 left from her late husband's straight life annuity, since only the husband was entitled to receive that money.