PFIN 7:STUDENT EDITION-TEXT
7th Edition
ISBN: 9780357033616
Author: Billingsley
Publisher: CENGAGE L
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Chapter 10, Problem 1FPE
Summary Introduction
To Discuss: Home-insurance policy and co-insurance clause.
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Assume that you have calculated: (a) premiums for life insurance policies and (b) payments to annuitants based upon an assumption that everybody dies before attaining age 101. Now you discover that a significant number of your policy owners are likely to live beyond age 101 and some will live to age 121. How will that affect your business?
Julia pays $500 for an insurance policy with anexpected value of $120. Explain why this is a rational choice for Julia
Barbara has homeowner’s insurance with $100001 face amount.She recently incurred fire damage of $50000 during the policy period. If the insurer values the home to be $150000, what would her insurance benefit before the deductible?
Choices:
$33334
$100000
$0
$50001
Chapter 10 Solutions
PFIN 7:STUDENT EDITION-TEXT
Ch. 10 - Prob. 1LOCh. 10 - Identify the types of coverage provided by...Ch. 10 - Prob. 3LOCh. 10 - Prob. 4LOCh. 10 - Prob. 5LOCh. 10 - Choose a property and liability insurance agent...Ch. 10 - Prob. 1FPECh. 10 - Last year, Thea and Rory Brown bought a home with...Ch. 10 - Prob. 3FPECh. 10 - Prob. 4FPE
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
- 2. Your dad applied for a term life insurance (provides the insured person with a coverage for a specified period of time of one, five or more years), He got a flexible policy (allows the insured person to change certain components of the insurance plan) because some payment options include a policy payout (insurance proceeds) as soon period achieved or upon contingency (death or accident). Some companies offer insurance products that can be availed only upon death. Because of this better option, your dad decided to avail of insurance A's flagship insurance product. Your dad's contribution per year is P20,000 that earns 6% compounded monthly for 20 years. How much will be paid out to your dad after 20 years by insurance A? as the targetarrow_forwardWhich one(s) is/are true for RRSP? (There might be more than one answer). Question 1 options: The Home Buyers' Plan (HBP) is a tax-free withdrawal from an RRSP account for persons who are deemed to be first-time home buyers. An eligible person is permitted to take an withdraw up to $35,000.00 from their RRSPs to purchase or construct a home for themselves. The LLP student must be enrolled on a full-time basis at the educational institution. Students can not be enrolled on a part-time basis under any conditions. Any contribution made to an RRSP within 89 days prior to the HBP request does not qualify to be part of the HBP program. Up to $5000 net per year, over four years, up to a maximum of $20,000 net, can be redeemed per spouse for purposes of the LLP.arrow_forwardCindy Schultz was recently hired at Bradonly Health Care. Cindy is in her 30s and in great health. She wants a flexible insurance plan and a tax-free savings plan. Which of the following would be the best option for Cindy? a. HDHP b. PPO c. Medicaid d. HMOarrow_forward
- If Carissa has a $140,000 home insured for $110,000, based on the 80 percent coinsurance provision, how much would the insurance company pay on a $14,200 claim?arrow_forwardWould you help me with this problem. Thank youarrow_forwardEvan had three accounts as listed below. In 2020, how much was his total insurance coverage by the FDIC? • Bank A: $110,000 Bank B: $80,000 • Bank C: $315,000 Multiple Choice O $110,000 $190,000 O $315,000arrow_forward
- 1 Rachel is applying for a participating whole life insurance policy and is yet to choose a divided payment option. She would like to know about the accumulation option. Which of the following information about the accumulation option is FALSE? eFhHRIhxROZCNVINSZFWWnViblAwQT09 a. O Rachel will be required to make minimum yearly withdrawals from the accumulation account.arrow_forwardYour cousin and her partner have a combined gross income of $10,111 and monthly expenses totaling $3,205. They plan to buy a house with a mortgage whose monthly PITI will be $2,000. (a) What is your cousin and her partner's combined housing expense ratio? (b) What is their total obligations ratio? (c) For what kind of mortgage can they qualify, if any? (d) If they do not qualify for an FHA mortgage, by how much should they reduce their monthly expenses in order to be eligible? (Set up an equation and solve it.)arrow_forwardSubject: acountingarrow_forward
- Rosie, age 30, would like to purchase a life insurance policy that will accumulate a cash value which will be paid beneficiaries in addition to the death benefit, and that will allow her to access the cash value during her lifetime withdrawals. Which of the following policies is most likely to meet her needs? O a. 20-year term with a double indemnity rider O b. Ordinary whole life. O c. Universal life option A Od. Universal life option Barrow_forwardCalli feels that the best way to determine how much life insurance she needs is to use the capital drawdown method. If inflation is 2.1% and she wants to have enough life insurance to provide her family with $54,000 for 32 years, how much life insurance does she need? Use the capital drawdown method to calculate the life insurance she needs and input your answer to the nearest dollar.arrow_forwardchoose three major insurance companies, obtain the premiums of life insurance policies for a 30 year old man with $300, 000 insurance coverage (death benefit). Compare the premium for term, whole or universal life insurance. Prepare a premium table and indicate which policy you consider and why?arrow_forward
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