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You just turned 2 9 years old and your Insurance Agent has just recommended either of two insurance products - a Whole Life Plan complete
You just turned years old and your Insurance Agent has just recommended either of two insurance productsa Whole Life Plan complete with Cash Surrender Value CSV and a Term to policy. Below are the details of each plan.
Whole Life: Sum InsuredMonthly PremiumCSV at
Term to : Insured Monthly Premium CSV at Zero
You are determined to implement a strategy that purchases the Term policy and monthly invests the difference between the two quoted premiums in an RRSP earning percent.
Required:
Calculate by how much will you exceed the CSV of the whole life policy should you decide to execute your strategy.
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