a 30-year-old female (a) a 20-year fixed rate policy and (b) a straight life policy. F) Estimate the annual premium of an insurance policy with a face value of $125,000 for a 20-year old male for (a) a 10-year fixed rate policy and (b) a straight life policy. Also, find premium if paid monthly, quarterly and annually

a 30-year-old female (a) a 20-year fixed rate policy and (b) a straight life policy. F) Estimate the annual premium of an insurance policy with a face value of $125,000 for a 20-year old male for (a) a 10-year fixed rate policy and (b) a straight life policy. Also, find premium if paid monthly, quarterly and annually

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter8: Insuring Your Life

Section: Chapter Questions

Problem 3FPE

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Similar questions

Using Table 19-1 and Table 19-2 find the following premiums for a 10-year term life insurance policy with a face value of $30,000 for a 28-year-old male. A. Annual premium B. Semiannual premium C. Quarterly premium D. Monthly premium Life Insurance—Premium FactorsPremium Paid Percent of Annual PremiumSemiannually 52%Quarterly 26%Monthly 9%
Calculate the annual premium for a 20 year old male seeking 5 year term insurance valued at $120,000.
If a life insurance company insures 50 females age 25 for $40,000, 10- year term policies, how much would they expect to pay out?Solve
Calculate the annual premium for the following policy. (Use Table 20.1.) (for females subtract 3 years from the table.) (Round your answer to the nearest cent.) **TABLE ATTACHED***** Amount of coverage (face value of policy) Age and sex of insured Type of insurance policy Annual premium $50,000 27 (F) 20-year endowment
A policyholder wishes to receive $5,000 per month in retirement. They plan to retire at the age of 64, the insurer is guaranteeing a 4% rate of return, and their life expectancy is 86. If they deposit each of the following amounts annually before retiring, at what age do they need to start saving? (A).$10,000 25 years old (technically, 25.60759 years old) (B).$15,000 33 years old (technically, 33.26361 years old) (C).$20,000 38 years old (technically, 38.17201 years old) (D).$25,000 41 years old (technically, 41.64589 years old)
Consider a whole life insurance with annual premiums and a 20-year premium paying term issued to a select life aged 30, with sum insured $200,000 payable at the end of the year of death. Write down an expression for the net future loss random variable
For life insurance policies, some of the premium pays for the cost of the insurance and the remainder goes towards the cash value of the policy and earns interest like a savings account. consider the following insurance company options. Company 1: pays 4.5% compounded monthly on the cash value of their policies Company 2: pays 4.52% compounded semi annually on the cash value of their policies what is the APY offered by each company? (round your answer to the nearest hundredth)
If an insurance company sells a 150,000 life insurance policy for 600 premium per year and the probability of living out the year is .9965, what is the expected value to the insurance company
An insurance company has a simplified method for determining the annual premium for a term life insurance policy. A flat annual fee of $150 is charged for all policies plus $2.50 for each thousand dollars of the amount of the policy.For example, a $20,000 policy would cost $150 for the fixed fee plus $50, which corresponds to the face value of the policy. If p equals the annual premium in dollars and x equals the face value of the policy (stated in thousands of dollars), determine the function which can be used to compute annual premiums.
A policyholder wishes to annuitize the cash value of her insurance policy at retirement. She desires an annual payment of $97.8,000 per year and the cash value is expected to be $1.5 million at retirement. Approximately how many payments can she expect to receive if annuity interest rates are 5.739 percent? (Do not round intermediate calculations. Round your answer to a whole number.)
Assume that Lina bought a permanent life insurance of $500,000 at the age of 25. At 32 she is starting her seventh year of policy, so she would like to know how much is the rate of return for the savings component of her policy in that seventh year. The annual premium is $1,200; the cash value at the end of the sixth year is $6,800 and $8,200 at the end of the seventh year; the dividend for the seventh year is $350; YPT for its age is $2.00. Determine the interest rate you will generate using the yearly rate of return Method.
you are 47 and have a 270,000 face amount 13-year limited payment participating policy. Your annual premium is 945. The cash value of the policy is expected to be 10,813 years using the time value of money and assuming you can invest your money elsewhere for a 6% annual yield, calculate the net cost of insurance.