Calculate the reduced pald-up insurance for Lee Chin, age 41, who purchased a $310,000 20-year endowment policy. At the end ofyear 5, Lee stopped paying premiums. (Use Table 20.2.)Reduced paid-up insuranceTABLE 20-2Nonforfelturo options based on $1,000 face valueSTRAIGHT LIFE20-PAYMENT LIFE20-YEAR ENDOWMENTEXTENDEDTERMYearsEXTENDEDEXTENDEDInsuranceAmount ofTERMAmount ofTERMAmount ofpollcy inforceCashvalueCashpaid-upInsurancepald-upCashpald-upYears DayvalueInsuranceYears Day valueInsuranceYearsDay29869.91712201919092229231401096259187618662128195319520301601514837120165317781321766107903530020265550213004751,000Life1,0001,000LifeOption 1: Cash value$200.000$1.000Option 2: Reduced paid-up insurance$200.000$1.000Option 3: Extended term insurance200 x$148 $29.600200 x $371$74.200Bob could continue this $200.000 polcyfor 20 years and 165 days

An endowment policy is essentially a life insurance policy that, in addition to insuring the…

Calculate the reduced paid-up insurance for Lee Chin, age 41, who purchased a $310,000 20-year endowment policy. At the end of year 5, Lee stopped paying premiums. (Use Table 202) Reduced paid-up insurance TABLE 20-2 Nonforfeituro options based on $1,000 face value STRAIGHT LIFE 20-PAYMENT LIFE 20-YEAR ENDOWMENT Years EXTENDED EXTENDED EXTENDED TERM Insurance Amount of TERM Amount of Amount of TERM policy in force Cash value paid-up Insurance Cash Years Day value pald-up Cash pald-up Insurance Years Day value Years Day Insurance 29 86 9. 91 71 220 19 190 92 229 23 140 10 96 250 18 76 186 521 28 195 319 520 30 160 15 148 371 20 165 317 781 32 176 610 790 35 300 20 265 550 21 200 475 1,000 Life 1,000 1,000 Life Option 1: Cash value Option 2: Reduced paid-up insurance $200.000 $1.000 Option 2: Extended term insurance $200.000 200 x $148 $29.600 200 x $371 $74.200 Bob could continue this $200.000 polcy for 20 years and 165 days $1.000

Calculate the reduced paid-up insurance for Lee Chin, age 41, who purchased a $310,000 20-year endowment policy. At the end of year 5, Lee stopped paying premiums. (Use Table 202) Reduced paid-up insurance TABLE 20-2 Nonforfeituro options based on $1,000 face value STRAIGHT LIFE 20-PAYMENT LIFE 20-YEAR ENDOWMENT Years EXTENDED EXTENDED EXTENDED TERM Insurance Amount of TERM Amount of Amount of TERM policy in force Cash value paid-up Insurance Cash Years Day value pald-up Cash pald-up Insurance Years Day value Years Day Insurance 29 86 9. 91 71 220 19 190 92 229 23 140 10 96 250 18 76 186 521 28 195 319 520 30 160 15 148 371 20 165 317 781 32 176 610 790 35 300 20 265 550 21 200 475 1,000 Life 1,000 1,000 Life Option 1: Cash value Option 2: Reduced paid-up insurance $200.000 $1.000 Option 2: Extended term insurance $200.000 200 x $148 $29.600 200 x $371 $74.200 Bob could continue this $200.000 polcy for 20 years and 165 days $1.000

PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)

6th Edition

ISBN:9781337117005

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

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

Chapter10: Protecting Your Property

Section: Chapter Questions

Problem 2FPE

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