K, age 45, and his wife, age 43, have three children. They purchase a Family Policy that covers K’s wife to age 65. All of these situations will pay a death benefit EXCEPT:

 Options:

a) K’s wife dies at age 60 b) K’s wife dies at age 66 c) A child dies at age 15 d) A child dies at age 18

The Correct Answer Is:

b) K’s wife dies at age 66

Correct Answer Explanation: b) K’s wife dies at age 66

➦ The question presents a scenario where K, aged 45, and his wife, aged 43, purchase a Family Policy that covers his wife until she reaches the age of 65.

➦ In this question, you are asked which of the scenarios described above will not be covered by the death benefit.

➦ As we seek to answer this question correctly, we should be aware of not only the terms and conditions of the Family Policy, but also the specifics of the situations mentioned in the options.

➦ In this case, the correct answer is option b) K’s wife dies at age 66. The reason for this is that the Family Policy has a coverage period which extends up to K’s wife’s 65th birthday.

➦ As soon as she reaches the age of 66, the policy ceases to be effective.

➦ It would, therefore, be impossible for K’s wife to receive any benefit if she passed away at the age of 66 since the policy would have already expired.

Why the other options are Incorrect?

a) K’s wife dies at age 60:

➦ This situation would result in a death benefit payout. As long as K’s wife passes away during the coverage period of the policy (up to her 65th birthday), the policy would pay out the death benefit.

➦ In this case, she passes away at age 60, which is within the coverage period so age 60 is covered by insurance period.

c) A child dies at age 15:

➦ The question specifies that K and his wife have three children.

➦ The Family Policy’s primary purpose is to provide a death benefit in case of the insured individual’s (K’s wife) death. It typically doesn’t cover the lives of the children directly.

➦ Therefore, the death of a child at age 15 would not affect the payout of the death benefit for K’s wife’s policy.

d) A child dies at age 18:

➦ Similar to option c), the policy primarily covers K’s wife. The death of a child at age 18 would not impact the payout of the death benefit for K’s wife’s policy.

➦ The policy’s terms and conditions are centered around the insured party (K’s wife) and the duration of her coverage.

➦ In summary, the correct answer is b) K’s wife dies at age 66, because this scenario falls outside the coverage period of the Family Policy, which only extends up to her 65th birthday.

➦ The other options (a, c, and d) would not prevent the payout of the death benefit according to the information provided in the question and standard insurance practices.

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