Susan is a 42-year-old lawyer who has taken out a universal life insurance policy to protect her two children (ages 13 and 10) in the event of her death. Each year, Susan chooses how much she would like to contribute to the policy, as shown by the first row of the table below. The insurance company subtracts from this an administrative fee along with the cost of the death benefit (the into the cash value (or pure insurance portion of the policy. This money earns interest at a market-based rate of return. Based on the given information, calculate the amount that is added to the cash value portion of the policy in each of the first three years savings portion of the policy) then puts the remainder Year 1 Year 2 Year 3 Premium (annual contribution) Administrative fee Cost of death benefit Amount added to cash value $2,776 $90 $130 $2,005 $90 $130 $1,733 $90 $130 The cost of the death benefit portion of universal policies is only fixed for certain periods and rises with age, as is the case with risen substantially. At the same time, she is paying college tuition and currently cannot afford to pay her life insurance premiunm life insurance policies. Suppose that in the 9th year of her policy, her cost of death benefit has True or False: Under the terms of a standard universal policy, if Susan stops paying her premiums, then her policy will be cancelled and the value of the cash portion will be paid out to her immediately True False