1. Explain the meaning of premature death. Identify the costs associated with premature death. 2. Define human life value. Describe the steps in determining the human life value of a family head. 3. Briefly explain the basic characteristics of term insurance. What are the major limitations of term insurance? 4. Briefly explain the basic characteristics of ordinary life policies. What is the major limitation of ordinary life insurance? 5. Explain the basic characteristics of universal life insurance. 6. What is a variable universal life insurance policy? How does variable universal life insurance differ from a typical universal life insurance policy? 7. Megan, age 32 , is married and has a son, age 1 . She recently purchased a cash-value life insurance policy that has the following characteristics: - The frequency and amount of premium payments are flexible. - The insurance and savings components are separate. - The interest rate credited to the policy is credited to certain market conditions, but the policy guarantees a minimum interest rate. - The policy has a back-end surrender charge that declines to zero over some time period. Based on the above characteristics, what type of life insurance did Megan purchase? Please give a detailed explanation of your answer. 8. Todd, age 28 , would like to save money for a comfortable retirement. He is considering purchasing a cash-value life insurance policy that has the following characteristics: - The premiums are invested in separate investment accounts selected by the policyholder. - Interest income and capital gains are not currently taxable to the policyholder . - The frequency and amount of premium payments can be changed as financial circumstances change. - A mortality and expense (M\&E) charge is periodically deducted from the cash value account. Based on the above characteristics, what type of life insurance is Todd considering purchasing? Explain your answer. 9. Richard, age 35 , is married and has two children, ages 2 and 5 . He is considering the purchase of additional life insurance. He has the following financial goals and objectives: Pay off the mortgage on his home, which has 25 years remaining - Accumulation of a sizeable retirement fund - Payment of monthly income to the family if he should die - Withdrawal of funds from the policy when the children reach college age For each of the following life insurance policies, indicate with an explanation which of the above financial goals, if any, could be met if the policy is purchased. Treat each policy separately. a. Decreasing term insurance b. Ordinary life insurance c. Universal life insurance d. Variable universal life insurance