Calculate the reduced paid-up insurance for Lee Chin, age 40, who purchased a $440,000 straight life policy. At the end of year 20, Lee stopped paying premiums. (Use Table 20.2.) Reduced paid-up insurance TABLE 20-2 Nonforfeiture options based on $1,000 face value Years insurance policy in force 5 STRAIGHT LIFE 20-PAYMENT LIFE 20-YEAR ENDOWMENT EXTENDED EXTENDED EXTENDED Amount of TERM Amount of TERM Amount of TERM Cash paid-up Cash paid-up Cash paid-up value insurance Years Day value insurance Years Day value insurance Years Day 29 86 9 91 71 220 19 190 92 229 23 140 96 259 18 76 186 521 28 195 319 520 30 160 148 371 20 165 317 781 176 610 790 300 265 550 21 300 475 1.000 Life 1.000 1.000 Life Option 1: Cash value Option 2: Reduced paid-up insurance Option 3: Extended term Insurance $200,000 $200,000 = 200 x $148 = $29,600 = 200 x $371 = $74.200 $1,000 $1.000 Bob could continue this $200,000 policy for 20 years and 165 days. 10 15 32 35 20