7. Determining the Cost of Insurance. Suppose you are 45 and have a $16,000 face amount, 15-year, limited-payment, participating policy (dividends will be used to build up the cash value of the policy). Your annual premium is $330. The cash value of the policy is expected to be $4,000 in 15 years. Using time value of money and assuming you could invest your money elsewhere for a 6 percent annual yield, calculate the net cost of insurance. Annual premium (15 years) Time value of money Total cost of policy Cash value (end of 15 years) Net cost of insurance 8. Determining the Cost of Insurance. Suppose you are 30 and have a $25.00 fara amunt an