If an insured has an outstanding loan of $5,000 on a policy with a face amount of $25,000, at death the company will:
When an insured with a $25,000 policy and a $5,000 loan dies, the insurance company will:
a) Deduct the loan and pay $20,000
b) Deduct the loan and pay $25,000
c) Pay the full $25,000
d) Pay $30,000
