Use the given table. Cindy started a whole-life insurance policy for $255,000 when she was 23 years old. At age 50, the policy has a cash value of $12,505 and Cindy converts the policy to extended term insurance for the same face value. Use 20-year level term rates to estimate the number of years of extended term insurance she has. Use a non-tobacco rate. E Click the icon to view the data table. Cindy hasO years of extended term insurance. (Do not round until the final answer. Then round to two decimal places as needed.)
Use the given table. Cindy started a whole-life insurance policy for $255,000 when she was 23 years old. At age 50, the policy has a cash value of $12,505 and Cindy converts the policy to extended term insurance for the same face value. Use 20-year level term rates to estimate the number of years of extended term insurance she has. Use a non-tobacco rate. E Click the icon to view the data table. Cindy hasO years of extended term insurance. (Do not round until the final answer. Then round to two decimal places as needed.)
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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Transcribed Image Text:Estimated Annual Life Insurance Premium Rates per $1,000 of Face Value
10-Year Level Term
20-Year Level Term
Age
PREF
1.09
Age
Male
Female
Male
Female
PREF
NT
PREF
NT
NT
PREF
NT
20
0.87
1.27
2.28
0.75
1.10
1.88
20
1.50
2.86
0.91
1.31
2.56
2.28
1.10
1.09
0.75
0.75
2.73 0.75
1.00
25
0.87
1.27
1.88
25
2.86
0.91
1.50
1.61
1.73
1.31
2.56
0.96
2.06
30
2.23
35
2.93
0.87
2.67
3.24
3.62
5.38
30
1.36
2.49
1.16
1.12
1.42
35
0.87
1.44
1.17
1.26
1.57
1.02
1.53
2.00
2.92
2.78
3.78
1.96
2.69
1.26
3.77
5.57
8.02
2.36
1.13
40
1.51
45
2.03
40
1.49
45 2.23
50 3.45
5.33
2.12
2.98
4.44
1.38
4.08
3.73
8.42
1.75
50
3.76
8.08
1.72
5.78
5.99
12.90
2.59
4.40
55
2.95
5.61
12.48 2.27
8.33
55
5.38
9.52
19.15
3.96
6.66
11.45
60
4.61
9.07 20.07
3.46
6.95
12.57 60
8.46
15.15 | 29.14
6.17
10.36
16.74
Transcribed Image Text:Use the given table. Cindy started a whole-life insurance policy for $255,000 when she was 23 years old. At age 50, the policy has a cash value of $12,505 and Cindy
converts the policy to extended term insurance for the same face value. Use 20-year level term rates to estimate the number of years of extended term insurance she
has. Use a non-tobacco rate.
E Click the icon to view the data table.
Cindy has years of extended term insurance.
(Do not round until the final answer. Then round to two decimal places as needed.)
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