Homework Answers
Reading the annual premium per $1,000 life insurance from the given tables, we have:
6). Annual premium = annual premium per $1,000 life insurance*(coverage/1,000) = 2.64*(30,000/1,000) = 79.20
7). Annual premium for a whole-life policy (F, age 30) = annual premium per $1,000 life insurance*(coverage/1,000) = 15.67*(50,000/1,000) = 783.50
8a). Annual premium for a 20-year payment (assuming Male, given age 30) = annual premium per $1,000 life insurance*(coverage/1,000) = 30.60*(70,000/1,000) = 2,142
b). Amount paid in past 10 years = annual premium*10 = 2,142*10 = 21,420
c). Total amount to be paid in 20 years = annual premium*20 = 2,142*20 = 42,840
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104 Life Insurance-Term and Other The main purpose of life insurance is to provide financial protection...
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Joe
and Maggie have life insurance through their employers equal to two
times their annual salaries, joe, age 37, has an annual salary of
$56,000 and Maggie, age 34, has an annual salary of $59,000. the
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5-year age bracket | Cost/$1,000 insurance for
1 month period
Under 25
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30 to 34
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35 to 39
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Calculate the reduced paid-up insurance for Lee Chin, age 39, who purchased a $240,000 20-payment...
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15, Lee stopped paying premiums. (Use Table 20.2.)
Reduced paid-up insurance
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2. Assume that all of the life insurance policies listed below are sold by the same life insurer, and have the same expense and mortality rates. Each policy also has a $100,000 face value. Which of these, sold to a 25 year old male, should be least expensive first year annual premium? a. yearly renewable term life b. life paid up at age 65 b. whole life d. 20 pay life
Understanding universal life insurance Universal life insurance combines elements from term and whole life insurance. Term policies provide a death benefit _______ savings component, whole life policies provide a death benefit _______ savings component, and universal policies provide a death benefit _______ savings component. To understand how universal premiums are allocated, consider the following example. Kathy is a 37-year-old lawyer who has taken out a universal life insurance policy to protect her two children (ages 8 and 6) in the...
What are the quarterly payments on a $100,000 universal life
insurance policy for a 30 year old female with a preferred
rate?
Data Table Table 2 Premium Rates for Periods Less Period Percent of Annual Period Premium Semiannually 51.00 Quarterly 26.00 Monthly 8.75 Estimated Annual Life Insurance Premium Rates per $1,000 of Face Value 10-Year Level Term 20-Year Level Term Age Male Female Age Male Female PREF NIT PREF NTT PREF NTT PREF NTT 20 0.87 1.272.28 0.75 1.10 1.88...
Joe
and Maggie have life insurance through their employers equal to two
times their annual salaries, joe, age 37, has an annual salary of
$56,000 and Maggie, age 34, has an annual salary of $59,000. the
annual cost of the group term insurance is $20 for each employee?
Table 1 Rates for Group Term Insurance:
5-year age bracket | Cost/$1,000 insurance for
1 month period
Under 25
$0.05
25 to 29
$0.06
30 to 34
$0.08
35 to 39
$0.09...
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Calculate the reduced paid-up insurance for Lee Chin, age 39,
who purchased a $240,000 20-payment life policy. At the end of year
15, Lee stopped paying premiums. (Use Table 20.2.)
Reduced paid-up insurance
$
TABLE 20.2 Nonforfeiture options based on $1,000 face value STRAIGHT LIFE 20-PAYMENT LIFE 20-YEAR ENDOWMENT Years insurance policy in Cash paid-up EXTENDED TERM EXTENDED TERM EXTENDED TERM Amount of Amount of Amount of Cash paid-up Cash paid-up value insurance Years Dayvalueinsurance Years Day value insurance Years...
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