Homework Answers
Continuous Premium is also known as Straight Life Insurance becasue insurer has to pay premium for the rest of the life until he dies.
He must buy continous premium/straight life insurance because it will give his son a greater benefit after his death.
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08: Assignment - Insuring Your Life 6. Understanding whole life insurance Suppose you are a life...
Understanding universal life insurance Universal life insurance combines elements from term and whole life insurance. Term...
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...
Drop down options: 1. term, whole, universal 2. term, while, universal Ch 08: Assignment - Insuring...
Drop down options:
1. term, whole, universal
2. term, while, universal
Ch 08: Assignment - Insuring Your Life Back to Assignment Attempts: Average: 2 8. Choosing policies based on circumstances Which Insurance Policy Is Best? Jake and Sondra are a married couple in their mid-thirties who are planning to start a family. Sondra works as a real estate agent and earns $250,000 a year, and Jake works as a dental assistant earning $40,000 a year. They would like to have...
What type of Life insurance such as term, whole life, variable, etc. would you recommend for...
What type of Life insurance such as term, whole life, variable, etc. would you recommend for each of these clients and why? Be sure to explain how each policy works and why it is right for them. A conservative married man age 50 who owns 15 gas stations in town that are worth over $12 million dollars. His wife is 30 and his 3 sons are all in their 20s with jobs in his business. He wants to work until...
104 Life Insurance-Term and Other The main purpose of life insurance is to provide financial protection...
104 Life Insurance-Term and Other The main purpose of life insurance is to provide financial protection for your dependents in case of your death. You may purchase term life insurance, whole life insurance, limited payment life insurance, of endowment life insurance. ANNUAL PREMIUM - NUMBER OF UNITS PURCHASED X PREMIUM PER $1000 Use the tables below to answer the problems. ANNUAL PREMIUM PER $1000 OF LIFE INSURANCE: 5-YR TERM Age 18 20 25 30 35 45 55 65 Male $...
4. A fully discrete whole life insurance policy paying $50,000 at the end of the year...
4. A fully discrete whole life insurance policy paying $50,000 at the end of the year of death is issued to an individual age 36. The net premium reserve at the end of 10 years is $8,000. The net premium for this policy is $900 and the net premium for an identical policy issued to an individual age 46 is P. The effective annual interest rate of interest is 6%. Determine P.
Walter owns a whole-life insurance policy worth $60,100 that directs the insurance company to pay the...
Walter owns a whole-life insurance policy worth $60,100 that directs the insurance company to pay the beneficiary $335,000 on Walter’s death. Walter pays the annual premiums and has the power to designate the beneficiary of the policy (it is currently his son, James). What value of the policy, if any, will be included in Walter’s estate upon his death? Value of Policy:
28. If your insurance policy promises to pay death benefits only if you die during a specified time, you have [term l whole] life insurance. 28. If your insurance policy promises to pay deat...
28. If your insurance policy promises to pay death benefits only if you die during a specified time, you have [term l whole] life insurance.
28. If your insurance policy promises to pay death benefits only if you die during a specified time, you have [term l whole] life insurance.
Question 4 A person, age 80, purchases a whole life insurance policy of 100,000. You are...
Question 4 A person, age 80, purchases a whole life insurance policy of 100,000. You are given: (i) The policy is priced with a select period of one year. (ii) The select mortality rate equals 80% of the mortality rate from the Standard Ul- timate Life Table. (ii) Ultimate mortality follows the Standard Ultimate Life Table. (iv) i = 0.05 Calculate the actuarial present value of the death benefits for this insurance. (Answer: 59,050.81)
A man is 35 and needs $300,000 in coverage. He opts for a whole life policy...
A man is 35 and needs $300,000 in coverage. He opts for a whole life policy since it will also accumulate cash and force him to save. Find the annual premium and the total premiums paid if he keeps the policy to age 60 Click here to view the Annual Premium rates per $1000 of Life Insurance Table Annual premium = (Simplify your answer.) (Simplify your answer.) Total premiums - Enter your answer in each of the answer boxes Lumele...
Question 37 remaining letter. D) If a departing employee elects to convert a lofe insurance policy,...
Question 37 remaining letter.
D) If a departing employee elects to convert a lofe insurance
policy, the insurer must offer term insurance as one of the
choices.
34 If an insured commits suicide after the suicide clause in the insured's life insurance policy has expired, the insurer will take which of the following actions? a) Refuse to pay the death benefit or refund any premiums b) Refund only the premiums paid c) Refund the premiums paid plus interest d) Pay...
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...
Drop down options:
1. term, whole, universal
2. term, while, universal
Ch 08: Assignment - Insuring Your Life Back to Assignment Attempts: Average: 2 8. Choosing policies based on circumstances Which Insurance Policy Is Best? Jake and Sondra are a married couple in their mid-thirties who are planning to start a family. Sondra works as a real estate agent and earns $250,000 a year, and Jake works as a dental assistant earning $40,000 a year. They would like to have...
104 Life Insurance-Term and Other The main purpose of life insurance is to provide financial protection for your dependents in case of your death. You may purchase term life insurance, whole life insurance, limited payment life insurance, of endowment life insurance. ANNUAL PREMIUM - NUMBER OF UNITS PURCHASED X PREMIUM PER $1000 Use the tables below to answer the problems. ANNUAL PREMIUM PER $1000 OF LIFE INSURANCE: 5-YR TERM Age 18 20 25 30 35 45 55 65 Male $...
4. A fully discrete whole life insurance policy paying $50,000 at the end of the year of death is issued to an individual age 36. The net premium reserve at the end of 10 years is $8,000. The net premium for this policy is $900 and the net premium for an identical policy issued to an individual age 46 is P. The effective annual interest rate of interest is 6%. Determine P.
28. If your insurance policy promises to pay death benefits only if you die during a specified time, you have [term l whole] life insurance.
28. If your insurance policy promises to pay death benefits only if you die during a specified time, you have [term l whole] life insurance.
Question 4 A person, age 80, purchases a whole life insurance policy of 100,000. You are given: (i) The policy is priced with a select period of one year. (ii) The select mortality rate equals 80% of the mortality rate from the Standard Ul- timate Life Table. (ii) Ultimate mortality follows the Standard Ultimate Life Table. (iv) i = 0.05 Calculate the actuarial present value of the death benefits for this insurance. (Answer: 59,050.81)
A man is 35 and needs $300,000 in coverage. He opts for a whole life policy since it will also accumulate cash and force him to save. Find the annual premium and the total premiums paid if he keeps the policy to age 60 Click here to view the Annual Premium rates per $1000 of Life Insurance Table Annual premium = (Simplify your answer.) (Simplify your answer.) Total premiums - Enter your answer in each of the answer boxes Lumele...
Question 37 remaining letter.
D) If a departing employee elects to convert a lofe insurance
policy, the insurer must offer term insurance as one of the
choices.
34 If an insured commits suicide after the suicide clause in the insured's life insurance policy has expired, the insurer will take which of the following actions? a) Refuse to pay the death benefit or refund any premiums b) Refund only the premiums paid c) Refund the premiums paid plus interest d) Pay...
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