Find the annual premium for a 20-year term insurance with sum insured $100,000 payable at the end

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Find the annual premium for a 20-year term insurance with sum insured $100,000 payable at the end of the year of death, issued to a select life aged 40 with premiums payable for at most 10 years, with expenses, which are incurred at the beginning of each policy year, as follows:

Year 1 Years 2+ % of premium Constant % of premium Constant Taxes Sales commission Policy maintenance 4% 25% 0% 0 0 10 4% 5%

Answer: P=$212.81.

Related Book For answer-question

Business Math

ISBN: 978-0133011203

10th edition

Authors: Cheryl Cleaves, Margie Hobbs, Jeffrey Noble

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Posted Date: Dec 05, 2020 05:01 AM

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Find the annual premium for a 20-year term insurance with sum insured $100,000 payable at the end

Question:

Taxes Sales commission Policy maintenance Year 1 % of premium Constant 4% 0 25% 0 0% 10 Years 2+ % of premium 4% 5% 0% Constant 0 0 5 Taxes Sales commission Policy maintenance Year 1 % of premium Constant 4% 0 25% 0 0% 10 Years 2+ % of premium 4% 5% 0% Constant 0 0 5

Expert Answer:

ANS WER 1 000 C AL C UL ATION 100 000 x 4 4 000 100 000 x 25 25 ... View the full answer

Business Math

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