Asked by Amber Porter on Apr 23, 2024
Verified
A client, age 25, is considering purchasing a 20-payment life policy with annual payments. He wants to know how much more he will have paid the insurance company in premiums per $1,000 coverage during the 20-year period than he can borrow on the policy at the end of the 20 years. Compute how much more the client will have to pay per thousand. Refer to Tables 12-1 and 12-2. (1 year = 12 months.)
Life Policy
an insurance contract that pays a specified sum to beneficiaries upon the death of the insured individual.
Per Thousand
A term used to denote rates or quantities calculated per thousand units.
Annual Payments
Regular payments made once a year, often as part of a financial agreement or obligation.
- Gain an understanding of the key concepts and computations applied in life insurance policies, together with the details of payment options and their enduring economic effects.
- Calculate the total cost of ownership of insurance policies, including premiums paid and potential loans against policies.
Verified Answer
ZK
Learning Objectives
- Gain an understanding of the key concepts and computations applied in life insurance policies, together with the details of payment options and their enduring economic effects.
- Calculate the total cost of ownership of insurance policies, including premiums paid and potential loans against policies.
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