A $100,000 life insurance policy for males aged 32 costs $10.06.
For males aged 54, the...
A $100,000 life insurance policy for males aged 32 costs $10.06.
For males aged 54, the policy costs $15.12. Find a linear
function P(x)P(x) that expresses the price PP of the life
insurance policy in terms of age xx.
Research the differences in the premium costs for a $100,000
whole life insurance policy and a $100,000 term life insurance
policy. Which is more expensive? Why is there a price difference
between the two? Which would you prefer and why?
Robert Weed is considering purchasing life insurance. He must
pay a $180 premium for a $100,000 life insurance policy. If he dies
this year, his beneficiary will receive $100,000. If he does not
die this year, the insurance company pays nothing and Robert must
consider paying another premium next year. Based on actuarial
tables, there is a 0.001 probability that Robert will die this
year. If Robert wishes to maximize his EMV, he would not buy the
policy if the...
o Life Insurance Policies – Tara’s ex-spouse
purchased a $100,000 term life insurance policy five years ago that
had Tara named as beneficiary. Tara has a $50,000 group term life
insurance policy from her employer. Tara is the insured and the
owner of the policy.
o Health Insurance Policy – Tara has
employer-provided health insurance. The family annual deductible is
$250, coinsurance is 80/20, and the family out-of-pocket stop loss
is $1,000. The lifetime cap of the policy is $1M...
Suppose a particular life insurance policy has an expected
profit for the insurer of $32. Which of the following is the best
interpretation of this value.
a) The company will earn an average of $32 for each additional
policy sold.
b) The company can expect a profit of $32 for each policy.
c) When the company sells a policy, it is guaranteed a $32
profit.
d) The company will earn $32 for each policy sold.
Your rich uncle dies, leaving you a life insurance policy.
Option 1 is to withdraw $100,000. The insurance company also offers
you option 2 (an annuity) to receive $9,000/year for 20 years, with
the first payment due in year 1. The discount rate is 6% per year.
Which option should you use?
A 33-year-old woman purchases a $100,000 term life insurance
policy for an annual payment of $490. Based on a period life table
for the U.S. government, the probability that she will survive the
year is 0.999051. Find the expected value of the policy for the
insurance company. Round to two decimal places for currency
problems.
Prudent policy life insurance co. offers a 10 year term life
insurance policy with a $250000 benefit and annual premiums of
$200, paid at the beginning of each year. If prudent can earn 8% on
invested capital, what is the present value to the firm of the
premiums from one policy, assuming the policy holder outlives the
policy term?
A life insurance trust is often named the beneficiary of a life
insurance policy it holds for which of the following reasons?
a. It can provide greater flexibility than is available under
insurance settlement options
b. It can eliminate a second estate tax upon the death of the
beneficiaries.
c. It can incorporate special limitations and restrictions on
the funds designed to be paid to specific beneficiaries.
d. All of the above
Pico Simons has a life insurance policy on his own life with
Assurance Life Insurance. In the event of his death, his sister
Amber will receive all of the proceeds. Which of the follow is
true?
Select one:
a. Assurance Life is the promisor, Pico is the promisee and
Amber is the third-party donee beneficiary.
b. Pico is the delegor, Assurance Life is the delegee, and Amber
is the obligee
c. Pico is the promisor, Assurance Life is the promisee...
Comparing the Costs of a Regular Health Insurance Policy and an
HMO. A health insurance policy pays 65 percent of physical therapy
cost after a $200 deductible. In contrast, an HMO charges $15 per
visit for physical therapy. How much would a person save with the
HMO if he or she had 10 physical therapy sessions costing $50
each?