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1. Mr. Flakey is 52 years old. In four years, his house will be paid off and his daughter will be finished with college. He
1. Mr. Flakey is 52 years old. In four years, his house will be paid off and his daughter will be finished with college. He wants to take out a five-year level-term life insurance policy with a face value $720,000. The monthly premium is $89. a. What will be his total cost for this policy over the 5-year period? b. If he dies after paying for the policy for 16 months, how much will the insurance company pay his beneficiaries? c. If he does not die during the five years, how much does the insurance company make on this policy? d. If he dies after paying for the policy for 19 months, how much will the insurance company lose on this policy
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