Jim purchased a $100,000 Participating Whole Life insurance policy some 12 years ago. The policy had a Waiver pf Premium Rider, Accidental Death benefit, and the dividends were purchasing Paid-Up Additions. Henry took advantage of the loan provision in his policy recently and borrowed $5000. Last night he died of a heart attack while playing 'old timer's hockey'. 

 What will Jim's beneficiary receive from the policy?

Mike participates in the group insurance plan offered by his employer. He contributes $162 through payroll deduction. His tax rate is 45%. The annual premium for $45,000 of life insurance is $540, of which employer pays 70% (i.e. $378). The employer adds a taxable benefit to Michael's annual income.

 On his death, what amount will Mike's estate receive?

Alex purchased a universal life policy in August, 1985 (G2 policy) in the amount of $200,000. She changed jobs and is receiving a reduced income so she has decided to reduce her coverage to $150,000. Her policy has a cash value CSV of $20,000 and an ACB of $8,000. Her personal tax rate is 26%

 What amount of taxes will she have to pay as a result of this partial surrender?

Sam is a married mother of 3 in her late 20s. After discussing her financial situation with her husband and life insurance agent she has come to the conclusion that she wants to assure that her family has $1000 per month of income for 10 years if she dies in addition to her current insurance benefits. Given this scenario how much coverage will Sam need if her life insurance agent uses the capital drawdown method?

After reviewing Paul's situation and needs, his insurance agent completed a life insurance application and accepted the first month's premium. The coverage applied for is $100,000. Given Paul's good health and financial standing, the agent also completed a form to issue 90 day temporary insurance agreement. Paul committed suicide 2 months after signing the application. His estate contact the agent to know whether the insurer will pay the death benefit.

 What should be the agent's response?

Andy earns $48,000 per year as an accountant, paying 25% in taxes. Andy is concerned how her young family will replace her income if she dies. After speaking to her life insurance agent and assuming a 6% rate of return, how much life insurance would her agent suggest that she should obtain to replace her after tax income?