Tina Parker, a single mother, is 30 years old. She has called on you for an insurance consultation. Her objective is to purchase life insurance protection for the next 10 years while her children are growing up. Tina tells you that she can afford about $450 per year for insurance premiums. You have suggested either a 10-year term policy or a whole life policy. (a) Using Table 19-1, rounded to the nearest thousand, how much insurance coverage (in $) can Tina purchase under each policy? Hint: Divide her annual premium allowance by the rate per $1,000 for each policy. 10-year term policy $? whole life policy $? (b) If she should die in the next 10 years, how much more (in $) will her children receive under the term insurance? $? (c) Using Table 19-3, if she should live beyond the 10th year, determine her nonforfeiture options with the whole life policy. Option 1: Cash value (in $) $? Option 2: Reduced Paid-up Insurance (in $) $? Option 3: Extended Term (Enter your answer in years and an amount of days less than 365.) ? years ? days
Tina Parker, a single mother, is 30 years old. She has called on you for an insurance consultation. Her objective is to purchase life insurance protection for the next 10 years while her children are growing up. Tina tells you that she can afford about $450 per year for insurance premiums. You have suggested either a 10-year term policy or a whole life policy. (a) Using Table 19-1, rounded to the nearest thousand, how much insurance coverage (in $) can Tina purchase under each policy? Hint: Divide her annual premium allowance by the rate per $1,000 for each policy. 10-year term policy $? whole life policy $? (b) If she should die in the next 10 years, how much more (in $) will her children receive under the term insurance? $? (c) Using Table 19-3, if she should live beyond the 10th year, determine her nonforfeiture options with the whole life policy. Option 1: Cash value (in $) $? Option 2: Reduced Paid-up Insurance (in $) $? Option 3: Extended Term (Enter your answer in years and an amount of days less than 365.) ? years ? days
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Tina Parker, a single mother, is 30 years old. She has called on you for an insurance consultation. Her objective is to purchase life insurance protection for the next 10 years while her children are growing up. Tina tells you that she can afford about $450 per year for insurance premiums. You have suggested either a 10-year term policy or a whole life policy.
(a) Using Table 19-1, rounded to the nearest thousand, how much insurance coverage (in $) can Tina purchase under each policy? Hint: Divide her annual premium allowance by the rate per $1,000 for each policy.
10-year term policy $?
whole life policy $?
(b) If she should die in the next 10 years, how much more (in $) will her children receive under the term insurance?
$?
(c) Using Table 19-3, if she should live beyond the 10th year, determine her nonforfeiture options with the whole life policy.
Option 1: Cash value (in $)
$?
Option 2: Reduced Paid-up Insurance (in $)
$?
Option 3: Extended Term (Enter your answer in years and an amount of days less than 365.)
? years
? days
Transcribed Image Text:TABLE 19-1 Annual Life Insurance Premiums (per $1,000 of Face Value)
Age
18
19
20
21
22
23
24
25
26
27
28
29
30
Male
$2.32
2.38
2.43
2.49
2.55
2.62
2.69
2.77
2.84
2.90
2.98
3.07
3.14
5-Year
Term
35
3.43
40
4.23
45
6.12
50
9.72
55 16.25
60 24.10
Term Insurance
Female
$ 1.90
1.96
2.07
2.15
2.22
2.30
2.37
2.45
2.51
2.58
2.64
2.70
2.78
2.92
3.90
5.18
8.73
12.82
19.43
10-Year
Term
Male
$4.33
4.42
4.49
4.57
4.64
4.70
4.79
4.85
4.92
5.11
5.18
5.23
5.30
6.42
7.14
8.81
14.19
22.03
37.70
Female
$4.01
4.12
4.20
4.29
4.36
4.42
4.47
4.51
4.60
4.69
4.77
4.84
4.93
5.35
6.24
7.40
9.11
13.17
24.82
Whole
Life
Male Female
$13.22 $11.17
13.60
11.68
14.12
12.09
14.53
14.97
15.39
15.90
16.38
16.91
17.27
17.76
18.12
18.54
12.53
12.96
13.41
13.92
14.38
14.77
15.23
15.66
16.18
16.71
24.19
22.52
27.21
25.40
33.02
29.16
37.94 33.57
45.83
37.02
53.98
42.24
Permanent Insurance
20-Payment
Life
Female
Male
$23.14 $19.21
24.42
20.92
25.10
21.50
25.83
26.42
27.01
27.74
28.40
29.11
29.97
30.68
31.52
32.15
37.10
42.27
48.73
56.31
61.09
70.43
22.11
22.89
23.47
24.26
25.04
25.96
26.83
27.54
28.09
28.73
33.12
36.29
39.08
44.16
49.40
52.55
20-Year
Endowment
Male
$33.22
33.68
34.42
34.90
35.27
35.70
36.49
37.02
37.67
38.23
38.96
39.42
40.19
43.67
48.20
51.11
58.49
71.28
79.15
Female
$29.12
30.04
31.28
31.79
32.40
32.93
33.61
34.87
35.30
35.96
36.44
37.21
37.80
39.19
42.25
46.04
49.20
53.16
58.08
Transcribed Image Text:TABLE 19-1 Annual Life Insurance Premiums (per $1,000 of Face Value)
Age
18
19
20
21
22
23
24
25
26
27
28
29
30
Male
$2.32
2.38
2.43
2.49
2.55
2.62
2.69
2.77
2.84
2.90
2.98
3.07
3.14
5-Year
Term
35
3.43
40
4.23
45
6.12
50
9.72
55 16.25
60 24.10
Term Insurance
Female
$ 1.90
1.96
2.07
2.15
2.22
2.30
2.37
2.45
2.51
2.58
2.64
2.70
2.78
2.92
3.90
5.18
8.73
12.82
19.43
10-Year
Term
Male
$4.33
4.42
4.49
4.57
4.64
4.70
4.79
4.85
4.92
5.11
5.18
5.23
5.30
6.42
7.14
8.81
14.19
22.03
37.70
Female
$4.01
4.12
4.20
4.29
4.36
4.42
4.47
4.51
4.60
4.69
4.77
4.84
4.93
5.35
6.24
7.40
9.11
13.17
24.82
Whole
Life
Male Female
$13.22 $11.17
13.60
11.68
14.12
12.09
14.53
14.97
15.39
15.90
16.38
16.91
17.27
17.76
18.12
18.54
12.53
12.96
13.41
13.92
14.38
14.77
15.23
15.66
16.18
16.71
24.19
22.52
27.21
25.40
33.02
29.16
37.94 33.57
45.83
37.02
53.98
42.24
Permanent Insurance
20-Payment
Life
Female
Male
$23.14 $19.21
24.42
20.92
25.10
21.50
25.83
26.42
27.01
27.74
28.40
29.11
29.97
30.68
31.52
32.15
37.10
42.27
48.73
56.31
61.09
70.43
22.11
22.89
23.47
24.26
25.04
25.96
26.83
27.54
28.09
28.73
33.12
36.29
39.08
44.16
49.40
52.55
20-Year
Endowment
Male
$33.22
33.68
34.42
34.90
35.27
35.70
36.49
37.02
37.67
38.23
38.96
39.42
40.19
43.67
48.20
51.11
58.49
71.28
79.15
Female
$29.12
30.04
31.28
31.79
32.40
32.93
33.61
34.87
35.30
35.96
36.44
37.21
37.80
39.19
42.25
46.04
49.20
53.16
58.08
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