Use the table below to answer the questions following. Settlement Options Monthly Installments per $1,000 of Face Value Options 1 and 2: Options 3 and 4: Income for Life Fixed Amount or Fixed Number of Years Age when Annuity Begins Life Life with Years Amount Male Female Annuity 10 Years Certain 10 $9.60 40 45 $4.60 $4.56 12 8.52 45 50 5.16 5.07 14 7.71 50 55 5.30 5.28 15 6.89 55 60 6.13 6.00 16 6.43 60 65 6.56 6.31 18 6.08 70 7.22 6.70 20 5.66 Female Life with 20 Years Certain $4.44 4.80 5.00 5.46 5.65 5.78 65 Find the monthly payment to a 60 year old man who is the beneficiary of $500,000 and wants to receive a monthly payment for life. Find the monthly payment to a 60 year old woman who is the beneficiary of $500.000 and wants to receive a monthly payment for life. Find the monthly payment if the beneficiary of $500,000 wanted to receive monthly payments for 15 years. How many years could someone receive a fixed monthly payment of $2556 if they were the beneficiary of $300,000? Bradley purchased a $200,000 whole life policy when he was 25. Now, 20 years later, he wants to know what his non-forfeiture options are. Use the table below to answer the questions following. Nonforfeiture Options on Typical Life Insurance Policies Issued at Age 25, per $1000 of face value WHOLE LIFE 20-PAYMENT LIFE YEARS Cash Paid-Up Extended Term Cash Paid-Up Extended IN Value Insurance Value Insurance Term FORCE Years Days Years Years Days 3 $ 9 319 1 190 332 $ 94 84 5 31 87 9 200 74 218 19 184 10 93 248 18 91 187 507 28 186 15 162 387 20 300 319 768 32 164 20 251 535 137 470 1,000 Life 40 576 827 Life 701 Life Life 10 22 What cash value does his policy have now? What amount of paid-up insurance could he convert his policy to? What extended term could he keep his full policy value for without paying more premiums? If he had purchased a term policy, what non-forfeiture options does he have? Sue purchases a $300,000 whole life policy. The annual premium rate is $23.99 per $1,000. Find her annual premium. If she lives for 30 years, find the total she paid in premiums over the 30 years. Mary purchases a $300,000 Limited Payment 20-year policy. The rate is $35.80 per $1.000. Find Mary's annual premium. If Mary lived for 30 more years, find the total she paid in premiums for this policy. Use the table below to answer the questions following. Settlement Options Monthly Installments per $1,000 of Face Value Options 1 and 2: Options 3 and 4: Income for Life Fixed Amount or Fixed Number of Years Age when Annuity Begins Life Life with Years Amount Male Female Annuity 10 Years Certain 10 $9.60 40 45 $4.60 $4.56 12 8.52 45 50 5.16 5.07 14 7.71 50 55 5.30 5.28 15 6.89 55 60 6.13 6.00 16 6.43 60 65 6.56 6.31 18 6.08 70 7.22 6.70 20 5.66 Female Life with 20 Years Certain $4.44 4.80 5.00 5.46 5.65 5.78 65 Find the monthly payment to a 60 year old man who is the beneficiary of $500,000 and wants to receive a monthly payment for life. Find the monthly payment to a 60 year old woman who is the beneficiary of $500.000 and wants to receive a monthly payment for life. Find the monthly payment if the beneficiary of $500,000 wanted to receive monthly payments for 15 years. How many years could someone receive a fixed monthly payment of $2556 if they were the beneficiary of $300,000? Bradley purchased a $200,000 whole life policy when he was 25. Now, 20 years later, he wants to know what his non-forfeiture options are. Use the table below to answer the questions following. Nonforfeiture Options on Typical Life Insurance Policies Issued at Age 25, per $1000 of face value WHOLE LIFE 20-PAYMENT LIFE YEARS Cash Paid-Up Extended Term Cash Paid-Up Extended IN Value Insurance Value Insurance Term FORCE Years Days Years Years Days 3 $ 9 319 1 190 332 $ 94 84 5 31 87 9 200 74 218 19 184 10 93 248 18 91 187 507 28 186 15 162 387 20 300 319 768 32 164 20 251 535 137 470 1,000 Life 40 576 827 Life 701 Life Life 10 22 What cash value does his policy have now? What amount of paid-up insurance could he convert his policy to? What extended term could he keep his full policy value for without paying more premiums? If he had purchased a term policy, what non-forfeiture options does he have? Sue purchases a $300,000 whole life policy. The annual premium rate is $23.99 per $1,000. Find her annual premium. If she lives for 30 years, find the total she paid in premiums over the 30 years. Mary purchases a $300,000 Limited Payment 20-year policy. The rate is $35.80 per $1.000. Find Mary's annual premium. If Mary lived for 30 more years, find the total she paid in premiums for this policy
