What percentage of coverage is guaranteed for a deceased employee with a primary beneficiary?

A primary beneficiary typically refers to the individual or individuals designated to receive benefits from an employee's life insurance policy or retirement plan upon the employee's death. In most cases, when a policyholder passes away and there is a primary beneficiary in place, the full amount of the coverage is paid out to that beneficiary as per the terms of the policy.

This means that if an employee with life insurance coverage dies, the policy guarantees that the primary beneficiary will receive 100% of the death benefit, assuming the policy is in force and all premiums have been paid. The rationale behind this full coverage is to provide financial support and security to the dependents or chosen beneficiary of the deceased, fulfilling the purpose of such insurance policies.

The other options indicate partial coverage percentages, which do not align with the standard practices of life insurance policies regarding primary beneficiaries. Such arrangements are specifically designed to ensure that the beneficiary can rely on the complete benefit amount in times of loss, making the coverage assurance at 100% both a logical and essential aspect of these contracts.