Beth purchased a $50,000 nonparticipating whole life insurance policy. The annual premium was $1,278. The cash value of the policy after 10 years will be $13,740. The future value of $1 deposited at the start of the year for 10 years, assuming 5 percent interest, is $13.207. What is the surrender cost of this policy, per thousand per year, over the first 10 years the policy is in force? A) $4.48 B) $4.75 C) $4.92 D) $5.16
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21. Beth purchased a $50,000 nonparticipating whole life insurance policy. The annual premium was $1,278. The cash value of the policy after 10 years will be $13,740. The
A) $4.48
B) $4.75
C) $4.92
D) $5.16
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- Beth purchased a $50,000 nonparticipating whole life insurance policy. The annual premium was $1,324. The cash value of the policy after 10 years will be $13,740. Assuming 5% interest rates. What is the traditional net cost of this policy, per thousand per year, over the first 10 years the policy is in force? (Round your answer to 2 decimal places)you are 47 and have a 270,000 face amount 13-year limited payment participating policy. Your annual premium is 945. The cash value of the policy is expected to be 10,813 years using the time value of money and assuming you can invest your money elsewhere for a 6% annual yield, calculate the net cost of insurance.Q5. A fully discrete 30-year endowment insurance policy of 400,000 is sold to Jenna who is 50 years old. The endowment policy contains an option where the endowment benefit at the end of 30 years can be taken as a whole life annuity due, with a 10-year guarantee, payable monthly from age 80, based on the same pricing assumptions as for the endowment insurance. You are given that: - The actuarial present value of the monthly payments at age 80 is equal to the amount of the endowment. Monthly annuities are calculated using the two-term Woolhouse formula. Mortality follows the Standard Ultimate Life Table with i = 0.05. Calculate the amount of the monthly payment.
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- The Eternal Gift Insurance Company is offering you a policy that will pay you and your heirs $10,000 a year forever. The cost of the policy is $285,000. What is the rate of return on this policy if the payment starts today? answer is 3.64%An insurance investment plan promises Ms.valentine a lump sum cost of sh.5500000 after the end of 15 years from now if the cost of capital is 18% how much is valentine willing to accept right now in lieu of the lumpsim?A fully discrete 30-year endowment insurance policy of 400,000 is sold to Jenna who is 50 years old. The endowment policy contains an option where the endowment benefit at the end of 30 years can be taken as a whole life annuity due, with a 10-year guarantee, payable monthly from age 80, based on the same pricing assumptions as for the endowment insurance. You are given that: − The actuarial present value of the monthly payments at age 80 is equal to the amount of the endowment. − Monthly annuities are calculated using the two-term Woolhouse formula. − Mortality follows the Standard Ultimate Life Table with ? = 0.05. Calculate the amount of the monthly payment.
- Timothy is retiring from his job soon at which time his employer will make the following offer: 1. A lumpsum amount of $200,0002. A sum of $15,000 at the beginning of each year for the next 25 years. If the average interest rate is likely to be 5.5% p.a. for the next 25 years, which option should Timothy choose?Tommy is retiring from his job soon at which time his employer willmake the following offer:1. A lumpsum amount of $200,0002. A sum of $15,000 at the beginning of each year for the next 25years.If the average interest rate is likely to be 5.5% p.a. for the next25 years, which option should Timothy choose?Timothy is retiring from his job soon at which time his employer willmake the following offer:1. A lumpsum amount of $200,0002. A sum of $15,000 at the beginning of each year for the next 25years.If the average interest rate is likely to be 5.5% p.a. for the next25 years, which option should Timothy choose?