How much will the insurance company pay K's beneficiary if K dies from an automobile accident after paying on a $20,000 20-Year Endowment policy for 10 years?

In the case of a 20-Year Endowment policy, the insurance company guarantees to pay the policy's face amount if the insured (in this instance, K) dies within the term of the policy, which is 20 years. Since K has paid into the policy for 10 years and subsequently dies from an automobile accident, the beneficiary is entitled to receive the full face value of the policy, which is $20,000.

The important distinction with an endowment policy is that it functions similarly to a life insurance policy in terms of providing a death benefit should the insured pass away during the policy term. Even though the policy has not matured or reached the 20-year mark (which would typically result in a payout to the policyholder if they were still alive), the death benefit is still applicable, and the full amount stated in the policy will be paid to the beneficiary in the event of the insured’s death.

This clearly illustrates the essential nature of life insurance coverage associated with endowment policies, emphasizing that benefits are available to beneficiaries regardless of whether the policy has matured, as long as the death occurs during the term of the policy.