1. Sara is 66 years old and has a whole life policy with the following features:

Annual premium = $800

Cash value on January 1, 2018 = $400,000

Cash value on December 31, 2018 = $405,000

After-tax earning rate = 5%

Current dividend = $600

Death benefit = $750,000

Based on the benchmark price of her age, $35, should she replace her current life insurance?

1. Yes
2. No
3. Cannot be determined