Sara is 66 years old and has a whole life policy with the following features: Annual premium = $800 Cash value on January 1, 2018
- 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?
- Yes
- No
- Cannot be determined
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Authors: William Brueggeman, Jeffrey Fisher
16th Edition
1259919684, 978-1259919688
