Asked by Linda Cashdollar on Jun 24, 2024
Verified
An insured 28 year old purchased a $100,000, 20-payment life policy with premiums payable annually and lived 20 more years. How much more did the insured pay the insurance company in premiums during his lifetime than he would have paid for a $100,000 straight-life policy with premiums payable annually? Refer to Table 12-1. (1 year = 12 months.)
Coinsurance Clause
A provision in an insurance policy that requires the insured to bear a portion of the costs of a claim, typically after the deductible has been met.
Premiums
Payments made regularly to an insurance company for coverage, often monthly or yearly.
- Understand the principles and calculations involved in life insurance policies, including payment plans and their long-term financial implications.
- Evaluate the financial implications of different insurance choices on policyholders over time.
Verified Answer
CA
Learning Objectives
- Understand the principles and calculations involved in life insurance policies, including payment plans and their long-term financial implications.
- Evaluate the financial implications of different insurance choices on policyholders over time.
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