Abeer, aged 30, female, purchased an insurance policy from National Life Insurance with a face value of 26,000 RO. The annual premium for five year fixed rate policy is: Rate table Five year Fixed Straight Life rate Age Male Female Age Male Female 20 1.57 1.27 20 5.90 4.24 25 1.65 1.33 25 7.13 6.35 30 1.87 1.56 30 8.85 7.75 35 2.23 1.76 35 11.26 9.71 40 3.52 2.44 40 14.54 12.46

Abeer, aged 30, female, purchased an insurance policy from National Life Insurance with a face value of 26,000 RO. The annual premium for five year fixed rate policy is: Rate table Five year Fixed Straight Life rate Age Male Female Age Male Female 20 1.57 1.27 20 5.90 4.24 25 1.65 1.33 25 7.13 6.35 30 1.87 1.56 30 8.85 7.75 35 2.23 1.76 35 11.26 9.71 40 3.52 2.44 40 14.54 12.46

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter4: Income Exclusions

Section: Chapter Questions

Problem 38P

See similar textbooks

Similar questions

Linda is an employee of JRH Corporation. Which of the following would be included in Lindas gross income? a. Premiums paid by JRH Corporation for a group term life insurance policy for 50,000 of coverage for Linda. b. 1,000 of tuition paid by JRH Corporation to State University for Lindas masters degree program. c. A 2,000 trip given to Linda by JRH Corporation for meeting sales goals. d. 1,200 paid by JRH Corporation for an annual parking pass for Linda.
Grace's employer is now offering group-term life insurance. The company will provide each employee with $185,000 of group-term life insurance. It costs Grace's employer $875 to provide this amount of insurance to Grace each year. Assuming that Grace is 31 years old, use the tale to determine the monthly premium that Grace must inckude in income as a result of receiving the group-term life benefit. EXHIBIT 12-08 Uniform Premiums for $1,000 of Group-Term Life Insurance Protection 5-Year Age Bracket. Cost Per $1,000 of Protection for One Month Under 25 $0.05 25 to 29 0.06 30 to 34 0.08 35 to 39 0.09 40 to 44 0.10 45 to 49 0.15 50 to 54 0.23
Consider a 25-year term insurance issued to a life aged 35 with annual premiums payable throughout the policy term, with sum insured $100,000 payable at the end of the year of death if death occurs during the term. Expenses are as follows: 10% of the 1st annual premium and 2% of each subsequent premium, with an inception expense of $100 and renewal expenses of (at the time of the payment of the 2nd and each subsequent premium) of $15. Calculate the annual premium (using the equivalence principle). Use table D (Standard Ultimate Survival Model) with i=5%.
Julia Baker died, leaving to her husband Brent an insurance policy contract that provides that the beneficiary (Brent) can choose any one of the following four options. a. $55,000 immediate cash. b. $4,000 every 3 months payable at the end of each quarter for 5 years. c. $18,000 immediate cash and $1,800 every 3 months for 10 years, payable at the beginning of each 3-month period. d. $4,000 every 3 months for 3 years and $1,500 each quarter for the following 25 quarters, all payments payable at the end of each quarter. Instructions If money is worth 2½% per quarter, compounded quarterly, which option would you recommend that Brent exercise?
Julia Baker died, leaving to her husband Tony an insurance policy contract that provides that the beneficiary (Tony) can choose any one of the following four options. Money is worth 2.5% per quarter, compounded quarterly. Compute Present value if: $4,060 every 3 months for 3 years and $1,480 each quarter for the following 25 quarters, all payments payable at the end of each quarter. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
ordan, age 46, currently makes $143,000. She expects that inflation will average 2.75 percent for her entire life expectancy. She expects to earn 8.5 percent on her investments and retire at age 65 and live to age 92. She has sent for and received her Social Security benefit statement, which indicated that her Social Security retirement benefit in today’s dollars adjusted for early retirement is $20,000 per year. It is reasonable to subtract the Social Security benefit from today’s needs because it is inflation adjusted. Calculate the amount of capital Jordan will need at retirement according to the capital preservation method.
A select life aged 60 purchases a 10-year endowment insurance with $100,000 sum insured. Premiums are payable annually in advance and death benefits are payable at the end of the year of death. Assume that (i) commission is 10% of the first premium and 4% of each subsequent premium, (ii) other expenses are $50 at issue, and $5 at each subsequent premium date, (iii) mortality follows the Standard Select Life Table, and (iv) interest is 5% per year. Calculate the annual premium.
Damian is age 79. He purchased a single life annuity contract that will pay him $4,000 per month for life. The expected return on the contract is: $936,000. $480,000. $40,000. $518,400.
A medical doctor, 48 years old, is enrolled in a pension fund that will pay he $6,000 monthly at retirement age 60. This fixed monthly pension payout will be for a period of 25 years. The doctor requires a 6%)annual return on her investments. The present value of this annuity today is closest to: A- $462798 B. $469.858 C- $945447
Calculate the annual premium for a 20 year old male seeking 5 year term insurance valued at $120,000.
Seanna O'Brien receives pension payments of $3, 100 at the end of every six months from a retirement fund of $ 47,000. The fund earns 8% compounded semi - annually. (a) How many payments will Seanna receive? (b) What is the size of the final pension payment?
Darlene wants to buy a $200,000 term life insurance policy. She is 34 years old. Using the premium table, what is her annual premium for a 10-year policy? a $100 b. $108 C$1.202 d. $1.290