1. Explain the differences between life insurance and term deposit. (2%)

2. Explain the following terms in life insurance: (6%) (a) annual premium (b) total premium paid (c) surrender value (d) non-accidental death benefit (e) accidental death benefit (f) maturity benefit

3. Compute the following amounts over a period of 25 years for the life insurance under Esthers consideration: (8%) (a) total premium paid (b) non-accidental death benefit (c) accidental death benefit (d) maturity benefit

4. Construct an amortization schedule to show in details how RM50,000 compounded at 3.33% per annum is used to pay premiums over a period of 25 years for the life insurance under Esthers consideration. (4%)

5. If Esther decides to keep RM50,000 in bank as term deposit to earn interest income, construct a table to show the annual bank account balances (principal plus interest income) over a period of 25 years for Esthers term deposit compounding at 3.33% per annum. (4%)

6. Construct a table to compare the bank account balances in term deposit with the following amounts over a period of 25 years: (6%) (a) surrender value from life insurance plus the unused portion of the money meant to pay premiums (b) non-accidental death benefit from life insurance plus the unused portion of the money meant to pay premiums (c) accidental death benefit from life insurance plus the unused portion of the money meant to pay premiums (d) maturity benefit from life insurance plus the unused portion of the money meant to pay premiums