A 35-year-old man is planning to build a life insurance policy for himself. His retirement age...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A 35-year-old man is planning to build a life insurance policy for himself. His retirement age under this insurance plan is "65". For this plan, he requires "whole life insurance", which begins with $100.000 death benefit and increases by $10.000 for every/each year. Additionally, he also wants a $300,000 "endowment pension" when he gets retired and a $35,000 "whole life annuity" after he retires at age 66. Annual premiums will be paid equally first 10 years. 1. What is the total liability for this life plan? 2. Calculate the annual premiums. 3. Calculate 5th year reserve. 4. Calculate 15th year reserve. 5. Calculate 45th year reserve.S 6. What will be death benefit if he wants to change his plan to whole life insurance at age 75? A 35-year-old man is planning to build a life insurance policy for himself. His retirement age under this insurance plan is "65". For this plan, he requires "whole life insurance", which begins with $100.000 death benefit and increases by $10.000 for every/each year. Additionally, he also wants a $300,000 "endowment pension" when he gets retired and a $35,000 "whole life annuity" after he retires at age 66. Annual premiums will be paid equally first 10 years. 1. What is the total liability for this life plan? 2. Calculate the annual premiums. 3. Calculate 5th year reserve. 4. Calculate 15th year reserve. 5. Calculate 45th year reserve.S 6. What will be death benefit if he wants to change his plan to whole life insurance at age 75?
Expert Answer:
Answer rating: 100% (QA)
Answer 1 The total liability for this life plan is 1000000 2 The annual premiums for this life plan are 10000 3 The 5th year reserve for this life pla... View the full answer
Related Book For
Business Statistics
ISBN: 978-0321925831
3rd edition
Authors: Norean Sharpe, Richard Veaux, Paul Velleman
Posted Date:
Students also viewed these accounting questions
-
A start-up company is planning to build a new golf course. For marketing purposes, the company would like to be able to advertise the new course as one of the more difficult courses in the state of...
-
A $500,000 life insurance policy for a 26-year-old offers four alternative premium payment plans: an annual premium of $470.00, semiannual premiums of $241.50, quarterly premiums of $123.37, or...
-
A city is planning to build a hydroelectric power plant. A local newspaper found that 53% of the voters in this city favor the construction of this plant. Assume that this result holds true for the...
-
Two 20-in. rods AB and DE are connected as shown. Point D is the midpoint of rod AB, and at the instant shown rod DE is horizontal. Knowing that the velocity of point A is 1 ft/s downward, determine...
-
Mendez was driving a minivan with six passengers when a rear tire made by Cooper Tire lost its tread. Mendez lost control and rolled the minivan. Four passengers were killed. Mendez and two others...
-
Tides Tea Company began operations on January 1, 2015. During the first year of business, the company had the following transactions: January 18: The owners invested $ 200,000 (the par value of the...
-
Compute ARRequal cash inflows (Learning Objective 2) Refer to the Allegra Data Set. Calculate the CD-player projects ARR. If the CD pro ject had a residual value of $100,000, would the ARR change?...
-
On January 1, 2012, Carlton Myers established Vista Realty. Carlton completed the following transactions during the month of January:a. Opened a business bank account with a deposit of $25,000 in...
-
Which of the following was Warren Buffett's better investment and why? 1) The $5 billion investment in Goldman Sachs. 2) The $5 billion investment in Bank of America.
-
Alice J. and Bruce M. Byrd are married taxpayers who file a joint return. Their Social Security numbers are 123-45-6784 and 111-11-1113, respectively. Alices birthday is September 21, 1974, and...
-
Explain why Newton's method doesn't work for finding the root of the equationx 3x + 1 = 0if the initial approximation is chosen to be x? = 1.f(x) = x 3x + 1 = f'(x) =-X. If x? = 1, then f'(x?) =
-
The following monthly information is available about a company s only product: Sales ( 2 , 6 0 0 units ) $ 3 9 0 , 0 0 0 Variable Costs 2 2 1 , 0 0 0 Contribution Margin $ 1 6 9 , 0 0 0 Fixed Costs 1...
-
1 Find the derivative of the following 1. f(x) = 12x- 6x+2 28 +4x3/4
-
You have been requested to develop a digital advertising campaign for the Christmas campaign of the department store Harrods. Harrods Limited is a department store located on Brompton Road in...
-
Graph the following equation: 1 (y+3)=(x-2)
-
The standard cost of product 9 9 9 includes 2 units of direct materials at $ 5 . 6 0 per unit. During August, the company bought 2 7 , 0 0 0 units of materials at $ 5 . 8 0 and used those...
-
Your Turn 1 Your friend incorrectly claims that A ABC is similar to A FGH by SAS Similarity Triangle Theorem Explain or show your friend their misunderstanding of SAS Similarity Theorem NA 10 9 H B
-
Anne is employed by Bradley Contracting Company. Bradley has a $1.3 million contract to build a small group of outbuildings in a national park. Anne alleges that Bradley Contracting has discriminated...
-
Using the data from Exercise 42, develop and compare the following models. In exercise a) Fit an appropriate autoregressive model by testing for the significance of each autoregressive term. b)...
-
Here are summary statistics for the sizes (in acres) of upstate New York vineyards from Exercise 10. a) From the summary statistics, would you describe this distribution as symmetric or skewed?...
-
Do the data in Exercise 42 suggest that the American Leagues designated hitter rule may lead to more runs per game scored? a) Write the null and alternative hypotheses. b) Find a 95% confidence...
-
An Euler circuit that visits every vertex _______________ a Hamilton cycle. Fill in the blank with is or is not to make the statement true.
-
Unlike in a Hamilton cycle, the vertex where the Hamilton path begins is _______________ the vertex where the Hamilton path ends. Fill in the blank with the same as or different from to make the...
-
Every cycle _______________ a circuit. Fill in the blank with is or is not to make the statement true.
Study smarter with the SolutionInn App