Question $1$:Richard, age $35,$ owns an ordinary life insurance policy in the amount of $$250,000.$ The policy is a participating policy that pays dividends. Richard has a number of financial goals and objectives. For each of the following situations, identify a dividend option that could be used to meet Richards goals. Treat each situation separately.$($a$)$ Richard would like to have a paid$-$up policy at the time of retirement.$($b$)$ Richard has substantial earned income that places him in a high marginal income$-$tax bracket. He wants the insurer to retain the dividends, but he does not want to pay income tax on the investment earnings.

Question $2$:Kathy, age $29,$ is married and has a son, age $3.$ She owns a $$100,000$ ordinary life insurance policy that contains a waiver$-$of$-$premium provision, guaranteed purchase option, and accelerated benefits rider. Kathy has a number of financial goals and objectives. For each of the following situations, identify an appropriate contractual provision or policy benefit that enable Kathy to meet her financial goals. Treat each situation separately.$($a$)$ Kathy is terminally ill form a serious heart condition. Kathys physician believes she will die within a year. Kathy has no savings and health insurance, and her medical bills are soaring. She needs $$50,000$ to pay all medical bills and other financial obligations.$($b$)$ Three years after the policy was issued, Kathy was diagnosed with breast cancer. As a result, she is now uninsurable. She would like to purchase additional life insurance to protect her family.

Question $3$:Bert purchased a life insurance policy $4$ years ago. He inadvertently stated that he was $1$ year younger than his actual age. If Bert dies today, how much will the insurance company pay? And WHY?A$)$ nothingB$)$ less than the policy face valueC$)$ the policy face valueD$)$ more than the policy face value