Chapter 19.I, Problem 10RE

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8th Edition

Robert Brechner + 1 other

ISBN: 9781305585447

Textbook Problem

Calculate the value of the nonforfeiture options for the following life insurance policies.

Face Value |
Years in |
Cash |
Reduced Paid-U p |
Extended Term |
|||||

of policy |
Force |
Type of Polio |
Value |
Insurance |
Years Days |
||||

10. | 250,000 | 7 | 20-Year Endowment |

To determine

**To calculate:** The value of the non-forfeiture options cash value, reduced paid-up insurance and extended term years or days for the provided life insurance, where the face value of policy is

Explanation

**Given Information:**

The provided life insurance is,

The face value of policy is

**Formula Used:**

The steps to calculate the various non-forfeiture options are as follows:

Step1: First calculate the number of

Step2: Now there are three options:

Option I-Cash value: For this fix the appropriate dollars per

Option II-Reduced Paid -Up Insurance: Determine the appropriate dollars per

Option III-Extended Term: For this fix the length of time of new extended term policy in Years and Days column of table 19-3.

**Calculation:**

Consider that the face value of policy is

The face value of policy is

Step 1:

Substitute the value

Sect-19.I P-1TIESect-19.I P-2TIESect-19.I P-3TIESect-19.I P-1RESect-19.I P-2RESect-19.I P-3RESect-19.I P-4RESect-19.I P-5RESect-19.I P-6RESect-19.I P-7RE

Sect-19.I P-8RESect-19.I P-9RESect-19.I P-10RESect-19.I P-11RESect-19.I P-12RESect-19.I P-13RESect-19.I P-14RESect-19.I P-15RESect-19.I P-16RESect-19.I P-17RESect-19.I P-18RESect-19.I P-19RESect-19.I P-20RESect-19.II P-4TIESect-19.II P-5TIESect-19.II P-6TIESect-19.II P-7TIESect-19.II P-8TIESect-19.II P-1RESect-19.II P-2RESect-19.II P-3RESect-19.II P-4RESect-19.II P-5RESect-19.II P-6RESect-19.II P-7RESect-19.II P-8RESect-19.II P-9RESect-19.II P-10RESect-19.II P-11RESect-19.II P-12RESect-19.II P-13RESect-19.II P-14RESect-19.II P-15RESect-19.II P-16RESect-19.II P-17RESect-19.II P-18RESect-19.II P-19RESect-19.II P-20RESect-19.II P-21RESect-19.II P-22RESect-19.II P-23RESect-19.II P-24RESect-19.III P-9TIESect-19.III P-10TIESect-19.III P-1RESect-19.III P-2RESect-19.III P-3RESect-19.III P-4RESect-19.III P-5RESect-19.III P-6RESect-19.III P-7RESect-19.III P-8RESect-19.III P-9RESect-19.III P-10RESect-19.III P-11RESect-19.III P-12RECh-19 P-1CRCh-19 P-2CRCh-19 P-3CRCh-19 P-4CRCh-19 P-5CRCh-19 P-6CRCh-19 P-7CRCh-19 P-8CRCh-19 P-9CRCh-19 P-10CRCh-19 P-11CRCh-19 P-12CRCh-19 P-13CRCh-19 P-14CRCh-19 P-1ATCh-19 P-2ATCh-19 P-3ATCh-19 P-4ATCh-19 P-5ATCh-19 P-6ATCh-19 P-7ATCh-19 P-8ATCh-19 P-9ATCh-19 P-10ATCh-19 P-11ATCh-19 P-12ATCh-19 P-13ATCh-19 P-14ATCh-19 P-15ATCh-19 P-16ATCh-19 P-17ATCh-19 P-18ATCh-19 P-19ATCh-19 P-20ATCh-19 P-21ATCh-19 P-22ATCh-19 P-23ATCh-19 P-24AT

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