Why would a person want to purchase Universal Life Insurance? The face value of the policy remains the same forever It provides both pure insurance and cash value build up The cost is so low, a person can have the insurance and invest any amount left over The premium is fixed for the life of the policy

Why would a person want to purchase Universal Life Insurance? The face value of the policy remains the same forever It provides both pure insurance and cash value build up The cost is so low, a person can have the insurance and invest any amount left over The premium is fixed for the life of the policy

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

How would a renters insurance policy help protect your property? What do such policies cover? How much would it cost you to insure against the look loss of just your laptop or desktop computer?
A consumer’s demand for a medical service is Q=100−PP where PP is the out-of-pocket price she actually faces. She is considering four different insurance options: uninsurance, full insurance, a 50% coinsurance plan, and a copayment plan with a $25 copay. a. Assume this service has a list price of PL =$70. Calculate Q under each insurance plan.b. Calculate the amount of social loss under each insurance plan.c. Derive a general expression for social loss as a function of x and PL, where x is the copay amount under a copayment plan. For simplicity’s sake, assume x<PL.d. Derive a general expression for social loss as a function of y and PL, where y is the coinsurance rate.
What would be the best way to for me to save money, for when I know i have money, i continue to spend until i run out
(Click on the into a spreadsheet.) Annuity B C Premium paid today $24.098.32 $22,274.30 $31,240.13 $30,150.95 Annual benefit $3,200 $4100 $4,000 $4,200 Life (years) 20 10 15
If we realize that our retirement plan will not be able to provide the desired income during our retirement period, we should make some corrections. From the measures listed below, choose the one that WILL NOT help us to achieve our financial goals during our retirement period. * Reduce our required income in retirement. Increasing the contributions to our retirement portfolio during our working period (that is, before we retire). Stop making deposits in our Individual Retirement Account (IRA). Trying to increase the rate of return of the investments we do to our retirement portfolio before retirment. Delay our retirement to a later date.
Value of a retirement annuity Personal Finance Problem An insurance agent is trying to sell you an annuity, that will provide you with $5,100 at the end of each year for the next 30 years. If you don't purchase this annuity, you can invest your money and earn a return of 5%. What is the most you would pay for this annuity right now? Ignoring taxes, the most you would pay for this annuity is S. (Round to the nearest cent.)
Kindly help Which of the following statements about life insurance is NOT accurate? a) permanent insurance puts a portion of the premium paid into investment which the insured then has the potential to cash in and recoup, whereas the premium paid for term insurance is simply a sunk cost for the insured . b) permanent insurance guarantees that the policy will pay out the face value to the beneficiary upon the death of the insured , whereas term insurance won't pay out anything at all once the term has finished. c) Term insurance is almost always less expensive than permanent insurance- both the monthly premium amount as well as the amount typically spent on insurance overall. d) Term insurance is simple life insurance policy that involves a less complicated contract with fewer provisions and exemptions , whereas permanent is the type of insurance that you must take care in reading the detailed fine print in the policy
A ROTH IRA or 401(k) allows you to take money out tax free, and thank your Professor for telling you to open, and fund this type of investment! O True O False
Please help if u cant do both skip better
1. Sandy collects OAS and CPP. In addition, she is about to transfer her RRSP to a RRIF so she can withdraw what she needs as she needs it. She thinks she has the discipline to save any amount she is required to withdraw that she does not consume. Her financial advisor suggests that she buy a life annuity instead. How can Sandy set things up so she is dealing with her own money illusion? Buy an indexed annuity. Set aside 5% of everything she receives from the annuity to provide a cushion later. C. а. b. Buy a real annuity if she can find one in Canada. All of the above can help her face her own money illusion. d.
If you are saving the same amount each month in order to buy a new BMW car when the new models are released the future value of an ordinary annuity will help you determine the savings needed. True / False
Find the expected net profit of an insurance company on a life-insurance policy whose death benefit is $1,000,000 if the annual premium for the policy is $2000 and the chance of the customer dying within the next year is 0.002. Interpret. (show work)

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