Kathleen Osness, aged 39, a massage therapist, decided to take out a limited-payment life policy. She chose this since she expects her income to decline in future years, Kathleen decided to take out a 20-year payment Ife policy with a coverage amount of $88.000. (Use Table 20.1 and Table 20.2.) (for females subtract 3 years when using Table 20.1.) a. Calculate her annual premium. (Round your answer to the nearest cent.) Annun premium b. If she decides to stop paying premiums after 15 years, what will be her cash value? (Enter your answe! Cash value TABLE 20-1 Five-year term Straight Age life Age Age Twenty-year endowment Life insurance rates for males (for femalos, subtract 3 years from the age) 1.85 5.90 6.13 6.35 660 Twenty payment life 828 861 8.91 9.23 9.56 9.91 1029 1070 11.12 11.58 12.05 12.57 13.10 13.67 14.28 14.92 15.60 16.30 17.04 17.81 18.61 10.44 20.31 21.21 22.15 1385 1435 1492 1554 16.05 17.55 17.66 18.33 19.12 20.00 20.90 21.88 2289 23.98 25.13 26.35 927 9.71 10.20 10.7 11.26 1184 1246 27.64 - 370 41 15.30 41 28.97 30.38 3184 33.36 34.94 36.59 38 29 4009 44 TABLE 20-2 Nonforfolture options based on $1,000 face value Years Insurance policy in force STRAIGHT LIFE 20-PAYMENT LIFE EXTENDED EXTENDED Amount of TERM Amount of TERM Cash pald-up Cash pald-up Walue insurance Years Day value Insuran Years Day 29 9 91 71 19 190 96 259 1876 186 28 195 148 371 20 165 317 781 32 176 265 550 21 300 475 1,000 Life Option 1: Cash value Option 2: Reduced paid up Insurance $200,0000 $200,000 $1,000 = 200 x $148 = $29.600 $1,000 = 200 x $371 = $74,200 86 220 521 20-YEAR ENDOWMENT EXTENDED Amount of TERM Cash pald-up value insurance Years Day 92 229 23 140 319 520 30 160 610 790 35 300 1.000 1.000 Option 3: Extended term Insurance Bob could continue this $200,000 policy for 20 years and 165 days