EXHIBIT 8.2 Representative Annual Renewable Term Life Insurance Premiums: $100,000 Policy, Preferred Nonsmoker Rates

When you buy term life insurance, you're buying a product that provides life insurance coverage and nothing more. This table shows representative rates for several age categories and selected policy years; actual premiums increase every year. As you can see, females pay less than males for coverage, and premiums increase sharply with age.

	AGE 25			AGE 40
Policy Year	Male	Female		Male	Female
1	$164	$143		$188	$178
5	$167	$150		$228	$225
10	$174	$163		$297	$264
15	$186	$176		$388	$330
20	$228	$225		$550	$443

EXHIBIT 8.3 Representative Level Premium Term Life Rates: $100,000 Preferred Nonsmoker Policy

This table shows representative annual premiums for $100,000 of level premium term life insurance. Although level premium costs less than annual renewable term for the same period, you must requalify at the end of each term to retain the low premium.

	10 YEAR			15 YEAR
Age	Male/Female			Male/Female
25	$120/$108			$120/$108
35	$125/$120			$131/$122
40	$144/$135			$154/$145
50	$216/$185			$257/$213
60	$450/$324			$567/$412

EXHIBIT 8.5 Representative Whole Life Insurance Annual Premiums: $100,000 Policy, Preferred Nonsmoker Rates

Like any life insurance product, whole life is more expensive the older you are. Also, whole life is more costly than term because you're getting an investment/savings account, represented by the "total cash value" column, in addition to life insurance coverage.

	ANNUAL PREMIUM
Age	Male	Female
25	$1,057	$956
30	$1,218	$1,099
35	$1,454	$1,278
40	$1,749	$1,499
50	$1,260	$2,183
60	$4,569	$3,562

Using the premium schedules provided in Exhibit 8.2, 8.3, and 8.5, how much in annual premium would a 25-year-old male have to pay for $100,000 of annual renewable term, level premium term, and whole life insurance? (Assume a 10-year term or period of coverage.) How much would a 25-year-old woman have to pay for the same coverage? Round your answers to the nearest dollar.

	Annual Renewable Term	Level-Premium Term	Whole Life
Male	$	$	$
Female	$	$	$

Consider a 40-year-old male (or female): Using annual premiums, compute the total cost of 10 years of coverage under annual renewable and level premium term options and whole life insurance coverage. Relate the advantages and disadvantages of each policy type to their price differences. Round your answers to the nearest dollar.

	Annual Renewable Term	Level-Premium Term	Whole Life
Male	$	$	$
Female	$	$	$