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Tom, age 42, has a life insurance policy at face amount of $1,000,000. His risk category is standard plus, with annual premium of $1,000. If
Tom, age 42, has a life insurance policy at face amount of $1,000,000. His risk category is standard plus, with annual premium of $1,000. If he were to purchase a single-premium policy, the premium would be $10,000. The required % of the corridor test is 250%.
Please illustrate the two scenarios where his contract will be qualified as life insurance. You'll need to specify the exact amount for the qualification.
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