Question
You are the beneficiary of a $200,000 Whole Life policy. The non-forfeiture table for the policy is shown below: ($200,000 Face Value) Age of Policy
You are the beneficiary of a $200,000 Whole Life policy. The non-forfeiture table for the policy is shown below:
($200,000 Face Value)
Age of Policy Cash Value Paid-up Insurance Extended Term
1 $ 0 $ 0 ----
6 $ 8,500 $ 9,950 7 yr; 139 days
10 $17,250 $20,225 13 yr; 175 days
At the end of year 10, you could ...
A.) use the paid-up insurance value to buy a $200,000 term policy for 7 years and 139 days.
B.) cancel the policy and collect $20,225.
C.) pay nothing more and collect $200,000 in 13 years and 175 days.
D.) pay nothing more and have $20,225 paid-up insurance the rest of his or her life.
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