The Butterfields are not sure if they are paying an appropriate premium for their universal life insurance policy. Which statement shown below is true in relation to this concern? The universal life policy is fairly priced according to the Yearly Price per Thousand formula. Even though the Yearly Price per Thousand formula states that the policy is over priced, given Haley’s health status, she should hold the policy because she probably will not qualify for another policy. Even though the universal policy is expensive, they should not replace it because the cost is less than two times the Yearly Price per Thousand formula benchmark price. Haley should replace the universal policy because, according to the Yearly Price per Thousand formula, the cost is more than two times the benchmark price.
The Butterfields are not sure if they are paying an appropriate premium for their universal life insurance policy. Which statement shown below is true in relation to this concern? The universal life policy is fairly priced according to the Yearly Price per Thousand formula. Even though the Yearly Price per Thousand formula states that the policy is over priced, given Haley’s health status, she should hold the policy because she probably will not qualify for another policy. Even though the universal policy is expensive, they should not replace it because the cost is less than two times the Yearly Price per Thousand formula benchmark price. Haley should replace the universal policy because, according to the Yearly Price per Thousand formula, the cost is more than two times the benchmark price.
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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The Butterfields are not sure if they are paying an appropriate premium for their universal life insurance policy. Which statement shown below is true in relation to this concern?
- The universal life policy is fairly priced according to the Yearly Price per Thousand formula.
- Even though the Yearly Price per Thousand formula states that the policy is over priced, given Haley’s health status, she should hold the policy because she probably will not qualify for another policy.
- Even though the universal policy is expensive, they should not replace it because the cost is less than two times the Yearly Price per Thousand formula benchmark price.
- Haley should replace the universal policy because, according to the Yearly Price per Thousand formula, the cost is more than two times the benchmark price.
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