Calculate the reduced paid-up insurance for Lee Chin, age 38, who purchased a $250,000 20-year endowment policy. At the end of year 15, Lee stopped paying premiums. (Use Table 20.2.) Reduced paid-up insurance TABLE 20-2 Nonforfeiture options based on $1,000 face value STRAIGHT LIFE 20-PAYMENT LIFE 20-YEAR ENDOWMENT EXTENDED TERM EXTENDED TERM EXTENDED TERM Years Insurance policy in force Cash value Amount of pald-up insurance Cash value Amount of paid-up Insurance Amount of pald-up Insurance Cash value Years Day Years Day Years Day 5 29 86 9 91 71 19 190 92 229 23 140 10 96 259 18 76 186 28 195 319 520 30 160 220 521 781 1.000 15 317 32 176 20 475 Life 148 371 20 165 265 550 21 300 Option 1: Cash value $200,000 = 200 x $148 = $29,600 $1.000 610 790 35 300 1.000 1.000 Life Option 3: Extended term Insurance Option 2: Reduced pald-up insurance $200,000 = 200 x $371 = $74.200 $1.000 Bob could continue this $200,000 policy for 20 years and 165 days