Calculate the reduced pald-up insurance for Lee Chin, age 41, who purchased a $310,000 20-year endowment policy. At the end ofyear 5, Lee stopped paying premiums. (Use Table 20.2.)Reduced paid-up insuranceTABLE 20-2Nonforfelturo options based on $1,000 face valueSTRAIGHT LIFE20-PAYMENT LIFE20-YEAR ENDOWMENTEXTENDEDTERMYearsEXTENDEDEXTENDEDInsuranceAmount ofTERMAmount ofTERMAmount ofpollcy inforceCashvalueCashpaid-upInsurancepald-upCashpald-upYears DayvalueInsuranceYears Day valueInsuranceYearsDay29869.91712201919092229231401096259187618662128195319520301601514837120165317781321766107903530020265550213004751,000Life1,0001,000LifeOption 1: Cash value$200.000$1.000Option 2: Reduced paid-up insurance$200.000$1.000Option 3: Extended term insurance200 x$148 $29.600200 x $371$74.200Bob could continue this $200.000 polcyfor 20 years and 165 days

An endowment policy is essentially a life insurance policy that, in addition to insuring the…

Calculate the reduced paid-up insurance for Lee Chin, age 41, who purchased a $310,000 20-year endowment policy. At the end of year 5, Lee stopped paying premiums. (Use Table 202) Reduced paid-up insurance TABLE 20-2 Nonforfeituro options based on $1,000 face value STRAIGHT LIFE 20-PAYMENT LIFE 20-YEAR ENDOWMENT Years EXTENDED EXTENDED EXTENDED TERM Insurance Amount of TERM Amount of Amount of TERM policy in force Cash value paid-up Insurance Cash Years Day value pald-up Cash pald-up Insurance Years Day value Years Day Insurance 29 86 9. 91 71 220 19 190 92 229 23 140 10 96 250 18 76 186 521 28 195 319 520 30 160 15 148 371 20 165 317 781 32 176 610 790 35 300 20 265 550 21 200 475 1,000 Life 1,000 1,000 Life Option 1: Cash value Option 2: Reduced paid-up insurance $200.000 $1.000 Option 2: Extended term insurance $200.000 200 x $148 $29.600 200 x $371 $74.200 Bob could continue this $200.000 polcy for 20 years and 165 days $1.000

Calculate the reduced paid-up insurance for Lee Chin, age 41, who purchased a $310,000 20-year endowment policy. At the end of year 5, Lee stopped paying premiums. (Use Table 202) Reduced paid-up insurance TABLE 20-2 Nonforfeituro options based on $1,000 face value STRAIGHT LIFE 20-PAYMENT LIFE 20-YEAR ENDOWMENT Years EXTENDED EXTENDED EXTENDED TERM Insurance Amount of TERM Amount of Amount of TERM policy in force Cash value paid-up Insurance Cash Years Day value pald-up Cash pald-up Insurance Years Day value Years Day Insurance 29 86 9. 91 71 220 19 190 92 229 23 140 10 96 250 18 76 186 521 28 195 319 520 30 160 15 148 371 20 165 317 781 32 176 610 790 35 300 20 265 550 21 200 475 1,000 Life 1,000 1,000 Life Option 1: Cash value Option 2: Reduced paid-up insurance $200.000 $1.000 Option 2: Extended term insurance $200.000 200 x $148 $29.600 200 x $371 $74.200 Bob could continue this $200.000 polcy for 20 years and 165 days $1.000

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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Solve by using the sinking fund or amortization formula. Betty Price purchased a new home for $245,000 with a 10% down payment and the remainder amortized over a 15 year period at 9% interest. (a) What amount (in $) did Betty finance? $ (b) What equal monthly payments (in $) are required to amortize this loan over 15 years? (Round your answer to the nearest cent.) $ (c) What equal monthly payments (in $) are required if Betty decides to take a 20 year loan rather than a 15 year loan? (Round your answer to the nearest cent.) $
A policyholder wishes to receive $5,000 per month in retirement. They plan to retire at the age of 64, the insurer is guaranteeing a 4% rate of return, and their life expectancy is 86. If they deposit each of the following amounts annually before retiring, at what age do they need to start saving? (A).$10,000 25 years old (technically, 25.60759 years old) (B).$15,000 33 years old (technically, 33.26361 years old) (C).$20,000 38 years old (technically, 38.17201 years old) (D).$25,000 41 years old (technically, 41.64589 years old)
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A special endowment assurance policy is issued to a male aged 55 and a female aged 50 with a term of 20 years. A benefit of $500,000 is payable immediately on the last death of the two lives. There is a survival benefit of $600,000 if both of them are alive; if only one of them is alive, the survival benefit is $400,000. Premiums are payable annually in advance over the term of the policy as long as one of them is alive. The interest rate is 4% per annum and the mortality basis is PA92C20. Calculate the net annual premium for this policy. Correct your answer to the nearest cent.
Express the net single premium (NSP) for a life insurance policy providing a $500,000 death benefit for 15 years and $1,000,000 thereafter if the age at issue is 25 in three (3) different ways. Assume that benefits are payable at the moment of death.
For a special fully discrete 3-year term insurance on (45), whose mor- tality follows a double decrement model: (i) Decrement 1 is accidental death; decrement 2 is all other causes of death. (ii) 45 2500 4 10 46 2486 15 47 2466 20 (ii) i = 0.06 (iv) The death benefit is 200,000 for accidental deaths and 100,000 for all other causes. Calculate the annual net premium (paid at the beginning of each year) and the net premium reserve at the end of year 1 and 2.
A pension scheme provides retirement benefits to a group of 200 pensioners currently aged 65 exact. The scheme pays an annual income of £19,000 annually in arrears if the pensioner is alive. A lump sum of £50,000 is paid at the end of the year of death. During the first year 3 members died. (i) (ii) Basis: Calculate, showing all working, the mortality profit or loss for the year. Explain why the mortality profit or loss has arisen. Mortality: Interest: AM92 Ultimate 6% p.a. effective
None
Age Pension Calculations - Asset Test Joseph (age 69) and Klarina (age 67) are Age Pensioners. Their assets & liabilities are: Asset - owner Value $ Home - joint 800,000 Savings - Joint 30,000 House contents - joint 10,000 Car - Joseph 25,000 Car - Klarina 15,000 Nil Account-based pension* - Joseph 250,000 N/A Account-based pension* 200,000 N/A -Klarina *pays 5% pa and both commenced in July 2019 Required: Showing your workings: Calculate their Age Pension under the Assets Test (show workings) $ Liability 20,000 Nil Nil
If John’s annual disposable income would increase to P 312,000, what is the proportionate share of John’s budget that will be allocated for his retirement
4. A select life aged 60 purchases a 10-year endowment insurance with $100,000 sum insured. Premiums are payable annually in advance and death benefits are payable at the end of the year of death. Assume that (i) commission is 10% of the first premium and 4% of cach subsequent premium, (ii) other expenses are $50 at issue, and $5 at each subsequent premium date, (iii) mortality follows the Standard Select Life Table, and (iv) interest is 5% per year. Calculate the annual premium.
Answer questions A,B, and C

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