Asked by Kirstan Woodward on May 22, 2024
Verified
An insured 25 year old purchased a $100,000, 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
A life insurance contract designed to pay a lump sum after a specific term (on its 'maturity') or on death.
Premiums
Regular payments made to keep an insurance policy active and maintain coverage against risks.
- Master the basic principles and arithmetic operations relevant to life insurance policies, including the analysis of payment plans and their long-lasting fiscal implications.
- Review the fiscal outcomes of diverse insurance plans on policyholders over extended periods.
Verified Answer
VA
Learning Objectives
- Master the basic principles and arithmetic operations relevant to life insurance policies, including the analysis of payment plans and their long-lasting fiscal implications.
- Review the fiscal outcomes of diverse insurance plans on policyholders over extended periods.
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