What amount will the life assurance company pay out if Dermot, who has a Term Assurance policy, is killed shortly after missing a payment?

In the case of a Term Assurance policy, the payout amount typically remains the same, which is the sum assured specified in the policy, provided the policy is in force at the time of the claim. However, if a premium payment is missed, it can affect the status of the policy. Generally, if a policyholder misses a payment, there is often a grace period during which they can make the payment without losing coverage.

If Dermot was killed shortly after missing a payment, the life assurance company would first consider whether the grace period was still in effect. Assuming that Dermot’s policy was still valid within that grace period, the company would pay out the full sum assured, which is typically the amount stated in the policy. If the policy lapsed due to non-payment and he was subsequently killed, the payout would be nil.

The amount of €149,950 mentioned in the provided answer arises from a potential deduction of any unpaid premiums or fees from the total sum assured, but it's key to note that in many instances of Term Assurance, unless the policy is void due to non-payment across the grace period, the full sum assured would generally still be payable. Therefore, if his coverage was intact, the payout would be €150,000