A participating ordinary life policy in the amount of $10,000 is sold to an individual, age...

A participating ordinary life policy in the amount of $10,000 is sold to an individual, age 35. The following cost data are given:

Annual premium $230

Total dividends for 20 years $1,613

Cash value at end of 20 years $3620

Accumulated value of the annual

premiums at 5 percent for 20 years $7,985

Accumulated value of dividends at

5% for 20 years $2,352

Amount to which $1 deposited annually

at the beginning of each year will

accumulate in 20 years at 5% $34.719

A Based on this information, compute the annual net cost per $1,000 of life insurance at the end of 20 years using the traditional nest cost method.

B compute the annual surrender cost index per $1,000 of life insurance at the end of 20 years

C compute the annual net payment cost index per $1,000 of life insurance at the end of 20 years.

Solutions

Expert Solution

jeff jeffy answered 1 year ago

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