Asked by charity earhart on Jul 02, 2024
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An insured 27 year old purchased a $120,000, 20-year endowment policy with premiums payable semiannually. Compute the amount the insured paid the insurance company in premiums during his lifetime. Refer to Table 12-1. (1 year = 12 months.)
Endowment Policy
An insurance policy designed to pay a lump sum after a specific term (on its 'maturity') or upon the death of the policyholder, whichever comes first.
Semiannually
Taking place two times a year, usually at six-month intervals.
Premiums
Premiums are the amounts paid for insurance policies, providing coverage against various risks and ensuring financial protection.
- Acquire insight into the primary aspects and calculations inherent in life insurance policies, considering the structure of payment schemes and their persistent financial impacts.
- Examine the financial impact of alternative insurance decisions on those insured over various durations.
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Learning Objectives
- Acquire insight into the primary aspects and calculations inherent in life insurance policies, considering the structure of payment schemes and their persistent financial impacts.
- Examine the financial impact of alternative insurance decisions on those insured over various durations.
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