Spouses Larry and Madge both work at the same pay grade for the federal government.

The health and dental coverage and disability insurance would stop and Madge can claim $150,000 from Larry's life insurance.

The health and dental coverage would stop, the disability insurance would roll over to Madge, and Madge can claim $150,000 from Larry's life insurance.

The health and dental coverage and disability insurance would roll over to Madge and Madge can claim $150,000 from Larry's life insurance.

The health and dental coverage, disability insurance, and Larry’s life insurance would all roll over to Madge.