Long-Life Insurance has developed a linear model that it uses to determine the amount of term...

Long-Life Insurance has developed a linear model that it uses to determine the amount of term life insurance a family of four should have, based on the current age of the head of the household. The equation is:

y = 169 -0.40x

where

y = Insurance needed ($000)
x = Current age of head of household

b. Use the equation to determine the amount of term life insurance to recommend for a family of four if the head of the household is 59 years old. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Amount of term life insurance $ thousands

Expert Solution

Given that, amount of term life insurance a family of four should have is represented by the equation as

Y = 169 - 0.40X

where Y = Insurance Needed (000)

X = Current age of household's head

For an age of head of household = 59 Years

Insurance needed = 169 - (0.40 x 59) = 145.4

= $145,400

keosha answered 2 years ago

For the same amount of premiums in comparison to whole life insurance, term life insurance generally...

For the same amount of premiums in comparison to whole life insurance, term life insurance generally purchases a.a greater amount of coverage. b.less amount of coverage. c.the same amount of coverage. d.a higher deductible. e.a lower deductible. Annual Cost-of-Living-Adjustment (COLA) changes of coverage levels within long-term care insurance, disability insurance, or homeowner's insurance policies is generally deigned to protect policyholders against a.the adverse event occurring. b.lower rates of return. c.lack of insurability. d.the company defaulting on its payments. e.inflation. Over...

1. For the same amount of premiums in comparison to whole life insurance, term life insurance...

1. For the same amount of premiums in comparison to whole life insurance, term life insurance generally purchases a.a greater amount of coverage. b.less amount of coverage. c.the same amount of coverage. d.a higher deductible. e.a lower deductible. 2. Annual Cost-of-Living-Adjustment (COLA) changes of coverage levels within long-term care insurance, disability insurance, or homeowner's insurance policies is generally designed to protect policyholders against a.the adverse event occurring. b.lower rates of return. c.lack of insurability. d.the company defaulting on its payments....

1. What is the advantage of term life insurance? lifetime insurance as long as premiums are...

1. What is the advantage of term life insurance? lifetime insurance as long as premiums are paid forced savings high rates of investment return more coverage per premium dollar 2. Which of the following policy features typically cost extra? Both waiver or premium and guaranteed insurability Waiver of premium Nonforfeiture values Guaranteed insurability 3.

(a) Whole life insurance has a savings component and term life insurance does not. What are...

(a) Whole life insurance has a savings component and term life insurance does not. What are the advantages of saving within a life insurance policy? (b) Provide an example of a family situation for which you would recommend term life insurance and include the disadvantages of the savings component in whole life.

Use the Leontief closed model to solve the linear system and determine the dollar amount each...

Use the Leontief closed model to solve the linear system and determine the dollar amount each organization pays for a credit. Use a scale factor of s = 100. For each organization, calculate the ratio of the number of credits required and cost per credit. What does this information provide? Provide your solution and recommendations. NVCC RM PFCH KFF NVCC 25 55 41 86 RM 56 23 102 65 PFCH 110 87 20 25 KFF 12 38 40 27

Derek purchased a life insurance policy and a long-term care insurance policy, what risk management strategy...

Derek purchased a life insurance policy and a long-term care insurance policy, what risk management strategy does he use? A. Risk transfer B. Risk avoidance C. Risk reduction D. Risk retention

What is the difference between Whole Life Insurance and Term life Insurance policies?

Q6: Application Question – Life insurance in superannuation a. If a term life insurance premium is...

Q6: Application Question – Life insurance in superannuation a. If a term life insurance premium is $1000 and the client decides to pay their premium out of after-tax dollars how much pre-tax income will an individual need if their marginal tax rate is: (1) 0% (2) 19.0% (3) 32.5% (4) 37.0% (5) 45.0% b. If a term life insurance premium is $1000, how much pre-tax income will an individual need if they decide to salary sacrifice their premium into superannuation?...

What are the main characteristics of long-term disability insurance? Briefly discuss the three types of life...

What are the main characteristics of long-term disability insurance? Briefly discuss the three types of life insurance policies offered in the US? Briefly discuss the types of disabilities recognized under workers' compensation laws? Please do not copy and paste or plagiarize and answer each questions minimum 1 paragraph, 6-8 sentences per question. Answer each question with number like Answer 1, Answer 2 and Answer 3.

Group Term Life Insurance Many employers limit providing employer-paid Group Term Life Insurance to $50,000. The...

Group Term Life Insurance Many employers limit providing employer-paid Group Term Life Insurance to $50,000. The IRS allows the $50k limit without assessing a tax on the value of this benefit. For a life insurance benefit in excess of $50k, the affected employee will have to include as income and pay income taxes. So some employers avoid the administrative chore of calculating the excess benefit and adding it to the employee’s annual W-2. A consequence to those employers may be...

Question