Answer:
$125,000. $18,000.
Explanation:
Shelly's $125,000 cash-value policy has a cash value of $18,000. If Shelly dies, her beneficiary receives $125,000. If she does not die, but decides to cancel the policy, Shelly will receive $18,000. Cash-value life insurance is permanent life insurance, it does not expire on a specific term. A portion of the premium is deposited in a cash-value account, which earns a low rate of interest. If Shelly dies, the beneficiary receives $125,000. If Shelly decides to cancel, she receives the accumulated cash value of $18,000.