Exam4Training

If an Insured under a life insurance policy dies with an outstanding loan balance then the death benefit will

If an Insured under a life insurance policy dies with an outstanding loan balance then the death benefit will
A . be reduced by the amount of the loan and interest owed.
B . not be paid until the loan is repaid.
C . be paid less the amount of the loan but not the interest.
D . be paid less the amount of the loan interest but not the principal.

Answer: C

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