Life insurance premiums and comparison of types 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. 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. 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 EXHIBIT 8.5 Representative Whole Ufe Insurance Arnual Premlums: $100,000 Policy, Preferred Nonsmoker Rates Like any lfe insurance product, whole life is more expensive the older you are. Also, whole Ife 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. Using the premium schedules provided in Exhibit 8.2, 8.3, and 8.5, how much in annual premum would a 25 -year-old male have to pay for $100,000 of annual renemabie term, level premium term, and whole lfe insurance? (Assume a 15 -yoar 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 doliar. Consider a 40-year-old male (or female): Using annual promiums, compute the total cost of 10 years of coverage under annual renewabie and level premium term options and whole life insurance coverage. Relate the sdvamtaget and disadvantages of each policy type to their price differences. Round your answers to the nearest dollar. Life insurance premiums and comparison of types 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. 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. 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 EXHIBIT 8.5 Representative Whole Ufe Insurance Arnual Premlums: $100,000 Policy, Preferred Nonsmoker Rates Like any lfe insurance product, whole life is more expensive the older you are. Also, whole Ife 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. Using the premium schedules provided in Exhibit 8.2, 8.3, and 8.5, how much in annual premum would a 25 -year-old male have to pay for $100,000 of annual renemabie term, level premium term, and whole lfe insurance? (Assume a 15 -yoar 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 doliar. Consider a 40-year-old male (or female): Using annual promiums, compute the total cost of 10 years of coverage under annual renewabie and level premium term options and whole life insurance coverage. Relate the sdvamtaget and disadvantages of each policy type to their price differences. Round your answers to the nearest dollar
