Question

Alexandra Cunningham of Gardner, Massachusetts, has a $130,000 participating cash-value policy written on her life. The policy has accumulated $4,600 in cash value; Alexandra has borrowed $2,000 of this value. The policy also has accumulated unpaid dividends of $1,281. Yesterday Alexandra paid her premium of $1,000 for the coming year. What is the current death benefit from this policy?

Answer 1

Current Death Benefit Calculation
Value of Participating cash value policy	$          130,000
Less Amount borrowed	$            (2,000)
Add : Accumulated unpaid dividends	$              1,281
Current Death Benefit from the policy	$          129,281