Questions: Bob and Tom start a business. Since each partner contributes an important element to the success of the business, they decide to take life insurance policies out on each other, and name each other as beneficiaries. Eventually, they retire and dissolve the business. Bob dies 12 months later. The policies continue in force with no change. Both partners are still married at the time of Bob's death. In this situation, who will receive Bob's policy proceeds? Tom's spouse Bob's estate Bob's spouse Tom

The answer is: Tom.

Explanation for each option:

1. Tom's spouse: This option is incorrect because the life insurance policy names Tom as the beneficiary, not his spouse. The proceeds from Bob's life insurance policy would go directly to Tom, as specified in the policy.

2. Bob's estate: This option is incorrect because the life insurance policy specifically names Tom as the beneficiary. Therefore, the proceeds do not become part of Bob's estate.

3. Bob's spouse: This option is incorrect because the life insurance policy names Tom as the beneficiary. Unless there was a change in the beneficiary designation before Bob's death, Bob's spouse would not receive the proceeds.

4. Tom: This is the correct answer. Since the life insurance policy names Tom as the beneficiary and there was no change to this designation, Tom will receive the proceeds from Bob's life insurance policy upon Bob's death.