K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an automobile accident. How much will the insurance company pay the beneficiary?

In the case of a 20-Year Endowment policy, the insurance company guarantees a death benefit during the term of the policy. Since K purchased a $20,000 endowment policy and died within the period covered by the policy, the beneficiary is entitled to the full death benefit of $20,000.

Endowment policies combine a life insurance component with a savings component, maturing at a specified age or after a certain period if the insured is still living. However, if the insured passes away during the term, as in K's situation, the death benefit is paid out to the beneficiary. The amount is determined by the face value of the policy, which in this case is $20,000. It is important to note that the insurance company does not prorate the benefit based on the number of years that K had been paying premiums; the full amount is provided as long as the policy was active at the time of death.