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J.C. Monahan, age 40, bought a straight-life insurance policy for $210,000. Calculate her annual premium. (Use Table 20.1.) If after 20 years J.C. no longer pays her premiums, what nonforfeiture options will be available to her? (Use Table 20.2.)   Annual premium   Nonforfeiture options   Option 1: Please chose one of the following: 1. Cash Value, 2. Extended Term, 3. Marketing Expense, 4. Operating income, 5. Other utilities 6. Paid-up insurance Option 2: Please chose one of the following: 1. Cash Value, 2. Extended Term, 3. Marketing Expense, 4. Operating income, 5. Other utilities 6. Paid-up insurance Option 3: Please chose one of the following: 1. Cash Value, 2. Extended Term, 3. Marketing Expense, 4. Operating income, 5. Other utilities 6. Paid-up insurance

J.C. Monahan, age 40, bought a straight-life insurance policy for $210,000. Calculate her annual premium. (Use Table 20.1.) If after 20 years J.C. no longer pays her premiums, what nonforfeiture options will be available to her? (Use Table 20.2.)   Annual premium   Nonforfeiture options   Option 1: Please chose one of the following: 1. Cash Value, 2. Extended Term, 3. Marketing Expense, 4. Operating income, 5. Other utilities 6. Paid-up insurance Option 2: Please chose one of the following: 1. Cash Value, 2. Extended Term, 3. Marketing Expense, 4. Operating income, 5. Other utilities 6. Paid-up insurance Option 3: Please chose one of the following: 1. Cash Value, 2. Extended Term, 3. Marketing Expense, 4. Operating income, 5. Other utilities 6. Paid-up insurance

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
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 6FPE
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J.C. Monahan, age 40, bought a straight-life insurance policy for $210,000. Calculate her annual premium. (Use Table 20.1.) If after 20 years J.C. no longer pays her premiums, what nonforfeiture options will be available to her? (Use Table 20.2.)

 
Annual premium  
Nonforfeiture options  
Option 1: Please chose one of the following: 1. Cash Value, 2. Extended Term, 3. Marketing Expense, 4. Operating income, 5. Other utilities 6. Paid-up insurance
Option 2: Please chose one of the following: 1. Cash Value, 2. Extended Term, 3. Marketing Expense, 4. Operating income, 5. Other utilities 6. Paid-up insurance
Option 3: Please chose one of the following: 1. Cash Value, 2. Extended Term, 3. Marketing Expense, 4. Operating income, 5. Other utilities 6. Paid-up insurance
TABLE 20-2 Nonforfeiture options based on $1,000 face value STRAIGHT LIFE 20-PAYMENT LIFE 20-YEAR ENDOWMENT Years EXTENDED EXTENDED EXTENDED insurance Amount of TERM Amount of TERM Amount of TERM policy in Cash paid-up Cash Cash paid-up Years Day value insurance paid-up force value insurance Years Day value insurance Years Day 5 29 86 9. 91 71 220 19 190 92 229 23 140 10 96 259 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 21 300 475 1,000 Life 1,000 1.000 Life Option 1: Cash value Option 2: Reduced paid-up insurance Option 3: Extended term insurance $200,000 $200,000 = 200 x $148 = $29,600 = 200 x $371 = $74,200 Bob could continue this $200,000 policy for 20 years and 165 days. $1.000 $1.000
Transcribed Image Text:TABLE 20-2 Nonforfeiture options based on $1,000 face value STRAIGHT LIFE 20-PAYMENT LIFE 20-YEAR ENDOWMENT Years EXTENDED EXTENDED EXTENDED insurance Amount of TERM Amount of TERM Amount of TERM policy in Cash paid-up Cash Cash paid-up Years Day value insurance paid-up force value insurance Years Day value insurance Years Day 5 29 86 9. 91 71 220 19 190 92 229 23 140 10 96 259 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 21 300 475 1,000 Life 1,000 1.000 Life Option 1: Cash value Option 2: Reduced paid-up insurance Option 3: Extended term insurance $200,000 $200,000 = 200 x $148 = $29,600 = 200 x $371 = $74,200 Bob could continue this $200,000 policy for 20 years and 165 days. $1.000 $1.000
TABLE 20-1 Five-year Stralght Twenty- payment life Twenty-year Age term Age life Age Age endowment Life insurance rates for males (for females, subtract 3 years from the age)? 20 1.85 20 5.90 20 8.28 20 13.85 21 1.85 21 6.13 21 8.61 21 14.35 22 1.85 22 6.35 22 8.91 22 14.92 23 1.85 23 6.60 23 9.23 23 15.54 24 1.85 24 6.85 24 9.56 24 16.05 25 1.85 25 7.13 25 9.9 1 25 17.55 26 1.85 26 7.43 26 10.29 26 17.66 27 1.86 27 7.75 27 10.70 27 18.33 28 1.86 28 8.08 28 11.12 28 19.12 29 1.87 29 8.46 29 11.58 29 20.00 30 1.87 30 8.85 30 12.05 30 20.90 31 1.87 31 9.27 31 12.57 31 21.88 32 1.88 32 9.71 32 13.10 32 22.89 33 1.95 33 10.20 33 13.67 33 23.98 34 2.08 34 10.71 34 14.28 34 25.13 35 2.23 35 11.26 35 14.92 35 26.35 36 2.44 36 11.84 36 15.60 36 27.64 37 2.67 37 12.46 37 16.30 37 28.97 38 2.95 38 13.12 38 17.04 38 30.38 39 3.24 39 13.8 1 39 17.81 39 31.84 40 3.52 40 14.54 40 18.61 40 33.36 41 3.79 41 15.30 41 19.44 41 34.94 42 4.04 42 16.11 42 20.31 42 36.59 43 4.26 43 16.96 43 21.21 43 38.29 44 4.50 44 17.86 44 22.15 44 40.09
Transcribed Image Text:TABLE 20-1 Five-year Stralght Twenty- payment life Twenty-year Age term Age life Age Age endowment Life insurance rates for males (for females, subtract 3 years from the age)? 20 1.85 20 5.90 20 8.28 20 13.85 21 1.85 21 6.13 21 8.61 21 14.35 22 1.85 22 6.35 22 8.91 22 14.92 23 1.85 23 6.60 23 9.23 23 15.54 24 1.85 24 6.85 24 9.56 24 16.05 25 1.85 25 7.13 25 9.9 1 25 17.55 26 1.85 26 7.43 26 10.29 26 17.66 27 1.86 27 7.75 27 10.70 27 18.33 28 1.86 28 8.08 28 11.12 28 19.12 29 1.87 29 8.46 29 11.58 29 20.00 30 1.87 30 8.85 30 12.05 30 20.90 31 1.87 31 9.27 31 12.57 31 21.88 32 1.88 32 9.71 32 13.10 32 22.89 33 1.95 33 10.20 33 13.67 33 23.98 34 2.08 34 10.71 34 14.28 34 25.13 35 2.23 35 11.26 35 14.92 35 26.35 36 2.44 36 11.84 36 15.60 36 27.64 37 2.67 37 12.46 37 16.30 37 28.97 38 2.95 38 13.12 38 17.04 38 30.38 39 3.24 39 13.8 1 39 17.81 39 31.84 40 3.52 40 14.54 40 18.61 40 33.36 41 3.79 41 15.30 41 19.44 41 34.94 42 4.04 42 16.11 42 20.31 42 36.59 43 4.26 43 16.96 43 21.21 43 38.29 44 4.50 44 17.86 44 22.15 44 40.09
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