Assessment activity: Chapter 08-Insuring Your Life 5. Understanding term life insurance Aa Aa Kathy is a 40-year-old female whose husband recently stopped working to attend law school. They expect that he will begin earning money as a lawyer with in five years, but until then, Kathy will be the provider for their two children. Given her current financial situation, she is interested in a term life insurance policy that will last 5 years. Kathy goes to an insurance broker to purchase a policy and is shown the following two rate tables to help her choose between annual renewable and level premium term life insurance. Yearly Rates on Term Life Insurance Policies Annual Renewable Term Life Rates Level Premium Term Life Rates Policy Year Age 25 Age 40 Age 60 Age 5 Year 15 Year 20 Year $119 $139 $252 25 $102 $84 $95 $147 $219 $562 35 $101 $84 $95 15 $176 $507 $1,313 40 $119 $102 $113 20 $259 $1,054 $2,989 50 $136 $167 $195 Total Cost 5 Years: $625 $897 $2,100 60 $245 $295 $394 Total Cost 15 Years; $2,135 $6,205 $11,987 Total Cost 20 Years: $3,777 $8:287 $22,346 sessment activity: Chapter 08-Insuring Your Life $252 $119 $139 25 $102 $95 1 $84 $219 $562 $101 $147 35 $84 $95 5 $507 $176 $1,313 40 $119 15 $102 $113 $259 $1,054 $136 $167 $195 20 $2,989 50 $394 60 $245 $295 $2,100 Total Cost 5 Years: $625 $897 Total Cost 15 Years: $2,135 $6,205 $11,987 Total Cost 20 Years: $3,777 $8,287 $22,346 en her age and desired policy term, she can purchase an annual renewable term life policy and pay in the fir over the course of the policy. Alternatively, she can purchase a level premium term life polic over the course of the policy. r and a total of pay a premium of per year for a total of s example is representative of why, in general, people today purchase term life insurance. Save & Contingge Graded