**TABLE 20.1**This table outlines life insurance rates for males, with instructions for females to subtract three years from their age. Non-binary individuals are currently required to apply as male or female.| Age | Five-year term | Age | Straight life | Age | Twenty-payment life | Age | Twenty-year endowment ||-----|----------------|-----|--------------|-----|---------------------|-----|-----------------------|| 20 | 1.85 | 20 | 5.90 | 20 | 8.28 | 20 | 13.85 || 21 | 1.85 | 21 | 6.13 | 21 | 8.61 | 21 | 14.35 || 22 | 1.85 | 22 | 6.35 | 22 | 8.91 | 22 | 14.92 || 23 | 1.85 | 23 | 6.60 | 23 | 9.23 | 23 | 15.54 || 24 | 1.85 | 24 | 6.85 | 24 | 9.56 | 24 | 16.05 || 25 | 1.85 | 25 | 7.13 | 25 | 9.91 | 25 | 17.55 || 26 | 1.85 | 26 | 7.43 | 26 | 10.29 | 26 | 17.66 || 27 | 1.86 | 27 | 7.75 | 27 | 10.70 | 27 | 18.33 || 28 | 1.86 | 28 | 8.08 | 28 | 11.12 | 28 | 19.12 || 29 | 1.87 | 29 | 8.46 | 29 | 11.58 | 29 | 20.00 || 30 **Calculating the Annual Insurance Premium**To calculate the annual premium for the following policy, please use Table 20.1. Note that for females, you should subtract 3 years from the table value. Ensure you round your answer to the nearest cent.| **Amount of Coverage** (face value of policy) | **Age and Sex of Insured** | **Type of Insurance Policy** | **Annual Premium** ||----------------------------------------------|----------------------------|------------------------------|-------------------|| $64,000 | 30 M | 20-year endowment | |**Instructions:**1. Use Table 20.1 to find the relevant premium rate for a 30-year-old male, given a 20-year endowment policy.2. Multiply this rate by the amount of coverage ($64,000) to determine the annual premium.3. Round the result to the nearest cent.This exercise is designed to help understand the process of calculating insurance premiums based on age, gender, policy type, and coverage amount.

Each and every individual should have a life insurance policy. It helps to provide financial security to the family members in case the individual dies untimely. This is the case of a 30-year-old male for a 20-year endowment policy. The provided table gives the cost per $1000 of policy coverage. The costs for the 20 year endowment policy is given in the last column of the table. The cost corresponding to age of 30 is 20.90 Hence cost = amount of coverage/1000 * amount as per the table= 64000/1000*20.90= 64*20.90= 1337.60Thus the answer is: $1,337.60

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Calculate the annual premium for the following policy. (Use Table 20.1.) (for females subtract 3 years from the table.) Note: Round your answer to the nearest cent. Amount of coverage (face value of policy) 64,000 $ Age and sex of insured 30 M Type of insurance policy 20-year endowment Annual premium

Calculate the annual premium for the following policy. (Use Table 20.1.) (for females subtract 3 years from the table.) Note: Round your answer to the nearest cent. Amount of coverage (face value of policy) 64,000 $ Age and sex of insured 30 M Type of insurance policy 20-year endowment Annual premium

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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24. Seth's LTCI policy will pay him a daily benefit of $150 and a lifetime maximum based on five years. What is the pool of money under this policy? (Search Chapter 6) a. $182,500 ob. $295,000 OC. $250,700 Od. $273,750
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