Personal Finance, 5th Edition

Chapter 13, Problem 3CQ

Given the total amount of insurance coverage needed and Daves present age (30 years old), estimate the premium that the Sampsons would pay using one of the insurance Web sites mentioned in the chapter (www.insure.com or finance.yahoo.com/insurance).

-The annual amount is $40,000, Number of years is 15, Annual interest rate is 6%, and the Present Value is $388,480.

-Coverage for $40,000 in annual benefits + $330,000 additional charges= Total insurance coverage. $388,480 + $330,000= $718,480. Dave needs a total of $718,480 in life insurance coverage.