Sarah Harding is insured under a $100,000 10-year Level Term Life Insurance Policy. If Sarah dies during the third year of the policy period, her beneficiaries will receive

Rationale

Sarah's beneficiaries will receive $100,000.00.

In a 10-year Level Term Life Insurance Policy, the death benefit remains fixed at the policy's face amount regardless of when the insured passes away within the policy term. Therefore, if Sarah dies during the third year, her beneficiaries are entitled to the full death benefit of $100,000.

A ($30,000.00) YOUR ANSWER

This amount does not correspond to any standard calculation related to term life insurance policies. The death benefit is not prorated based on the time elapsed within the policy, making this option incorrect.

B ($60,000.00) YOUR ANSWER

Similar to choice A, this figure inaccurately suggests a partial payout based on the duration of the policy. Term life insurance guarantees the full face value to beneficiaries if the insured dies during the term, rendering this choice incorrect.

C ($70,000.00) YOUR ANSWER

This option also implies a partial payout, which does not apply in the context of a level term policy. The specifics of the policy dictate that the beneficiaries receive the policy's full face value upon the insured's death, making this choice incorrect.

D ($100,000.00) CORRECT

This is the correct amount that Sarah's beneficiaries will receive. In a level term life insurance policy, the death benefit remains constant and is paid in full upon the insured's death at any point during the term, including during the third year.

Conclusion

In summary, term life insurance guarantees a specific death benefit amount to beneficiaries as outlined in the policy. For Sarah Harding, who is covered under a $100,000 10-year Level Term Life Insurance Policy, her beneficiaries are entitled to the full amount of $100,000 if she passes away during the policy term, regardless of when that occurs. All other options incorrectly suggest a reduced benefit that does not apply to this type of policy.

Sarah Harding is insured under a $100,000 10-year Level Term Life Insurance Policy. If Sarah dies during the third year of the policy period, her beneficiaries will receive

Sarah's beneficiaries will receive $100,000.00.

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