Calculate the cash surrender value for Lee Chin, age 40, who purchased a $300,000 20-payment life policy. At the end of year 5, Lee stopped paying premiums. (Use Table 20.2.) Cash surrender value TABLE 20-2 Nonforfeiture options based on $1,000 face value STRAIGHT LIFE 20-PAYMENT LIFE 20-YEAR ENDOWMENT EXTENDED TERM EXTENDED TERM Years insurance policy in force Cash value Amount of pald-up insurance Cash value Amount of pald-up insurance EXTENDED TERM Cash Years Day value Amount of pald-up insurance Years Day Years Day 5 92 229 23 140 10 319 30 160 520 790 610 35 300 15 20 29 86 9 91 96 259 18 76 148 371 20 165 265 21 300 Option 1: Cash value $200,000 = 200 x $148 = $29.600 $1.000 550 71 220 19 190 186 521 28 195 317 781 32 176 475 1.000 Life Option 2: Reduced paid-up Insurance $200,000 = 200 x $371 = $74.200 $1.000 1.000 1,000 Life Option 3: Extended term Insurance Bob could continue this $200.000 policy for 20 years and 165 days