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Concept explainers
To calculate: The annual premium for a female aged 55 with universal life policy and the face value $300,000.
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Answer to Problem 1ES
Solution:
The annual premiumfor a female aged 55 is $5679.
Explanation of Solution
Given Information:
The females with age 55years having universal life policy and with face value $300,000 having PREF rate classification.
TABLE 19-1 Estimated Annual Life Insurance Premium Rates per $1000 of Face Value is referred.
Formula used:
The annual premium is calculated as:
Calculation:
The age of the female is 55years with universal life policy and PREF rate classification.
The face value is $300,000.
Use the formula given to find the annual premium.
From the TABLE19-1for the universal life policy and PREF, the rate at age 55 is 18.93%.
Therefore, the annual premium will be:
Hence, the annual premium is $5679.
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Chapter 19 Solutions
EBK BUSINESS MATH
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