What will be the death benefit paid by the insurer if a life insurance policy has a $50,000 benefit and a $5,000 policy loan is outstanding at the time of death?

In a life insurance policy, the death benefit is typically the face value of the policy at the time of the insured's death. However, if there is an outstanding policy loan, the amount of this loan is subtracted from the death benefit that the insurer will pay out.

In this case, the policy has a death benefit of $50,000, but there is a $5,000 loan that needs to be deducted from that amount. Therefore, the calculation for the actual death benefit paid out would be as follows:

$50,000 (death benefit) - $5,000 (outstanding loan) = $45,000.

Thus, the insurer will pay out $45,000 as the death benefit, reflecting the reduction due to the outstanding loan. This ensures that the insurer is not paying out more than what is specified in the policy after accounting for any loans or advances made against it.