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Tina Parker, a single mother, is 30 years old. She has called on you for an insurance consultation. Her objective is to purchase life insurance protection for the next 10 years while her children are growing up. Tina tells you that she can afford about $450 per year for insurance premiums. You have suggested either a 10-year term policy or a whole life policy. (a) Using Table 19-1, rounded to the nearest thousand, how much insurance coverage (in $) can Tina purchase under each policy? Hint: Divide her annual premium allowance by the rate per $1,000 for each policy.   10-year term policy $?   whole life policy $?   (b) If she should die in the next 10 years, how much more (in $) will her children receive under the term insurance? $?   (c) Using Table 19-3, if she should live beyond the 10th year, determine her nonforfeiture options with the whole life policy.   Option 1: Cash value (in $) $?   Option 2: Reduced Paid-up Insurance (in $) $?   Option 3: Extended Term (Enter your answer in years and an amount of days less than 365.) ? years ? days

Tina Parker, a single mother, is 30 years old. She has called on you for an insurance consultation. Her objective is to purchase life insurance protection for the next 10 years while her children are growing up. Tina tells you that she can afford about $450 per year for insurance premiums. You have suggested either a 10-year term policy or a whole life policy. (a) Using Table 19-1, rounded to the nearest thousand, how much insurance coverage (in $) can Tina purchase under each policy? Hint: Divide her annual premium allowance by the rate per $1,000 for each policy.   10-year term policy $?   whole life policy $?   (b) If she should die in the next 10 years, how much more (in $) will her children receive under the term insurance? $?   (c) Using Table 19-3, if she should live beyond the 10th year, determine her nonforfeiture options with the whole life policy.   Option 1: Cash value (in $) $?   Option 2: Reduced Paid-up Insurance (in $) $?   Option 3: Extended Term (Enter your answer in years and an amount of days less than 365.) ? years ? days

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter7: Exponents And Exponential Functions
Section: Chapter Questions
Problem 68SGR
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Tina Parker, a single mother, is 30 years old. She has called on you for an insurance consultation. Her objective is to purchase life insurance protection for the next 10 years while her children are growing up. Tina tells you that she can afford about $450 per year for insurance premiums. You have suggested either a 10-year term policy or a whole life policy.
(a) Using Table 19-1, rounded to the nearest thousand, how much insurance coverage (in $) can Tina purchase under each policy? Hint: Divide her annual premium allowance by the rate per $1,000 for each policy.
 
10-year term policy $?
 
whole life policy $?
 
(b) If she should die in the next 10 years, how much more (in $) will her children receive under the term insurance?
$?
 
(c) Using Table 19-3, if she should live beyond the 10th year, determine her nonforfeiture options with the whole life policy.
 
Option 1: Cash value (in $)
$?
 
Option 2: Reduced Paid-up Insurance (in $)
$?
 
Option 3: Extended Term (Enter your answer in years and an amount of days less than 365.)
? years
? days
TABLE 19-1 Annual Life Insurance Premiums (per $1,000 of Face Value) Age 18 19 20 21 22 23 24 25 26 27 28 29 30 Male $2.32 2.38 2.43 2.49 2.55 2.62 2.69 2.77 2.84 2.90 2.98 3.07 3.14 5-Year Term 35 3.43 40 4.23 45 6.12 50 9.72 55 16.25 60 24.10 Term Insurance Female $ 1.90 1.96 2.07 2.15 2.22 2.30 2.37 2.45 2.51 2.58 2.64 2.70 2.78 2.92 3.90 5.18 8.73 12.82 19.43 10-Year Term Male $4.33 4.42 4.49 4.57 4.64 4.70 4.79 4.85 4.92 5.11 5.18 5.23 5.30 6.42 7.14 8.81 14.19 22.03 37.70 Female $4.01 4.12 4.20 4.29 4.36 4.42 4.47 4.51 4.60 4.69 4.77 4.84 4.93 5.35 6.24 7.40 9.11 13.17 24.82 Whole Life Male Female $13.22 $11.17 13.60 11.68 14.12 12.09 14.53 14.97 15.39 15.90 16.38 16.91 17.27 17.76 18.12 18.54 12.53 12.96 13.41 13.92 14.38 14.77 15.23 15.66 16.18 16.71 24.19 22.52 27.21 25.40 33.02 29.16 37.94 33.57 45.83 37.02 53.98 42.24 Permanent Insurance 20-Payment Life Female Male $23.14 $19.21 24.42 20.92 25.10 21.50 25.83 26.42 27.01 27.74 28.40 29.11 29.97 30.68 31.52 32.15 37.10 42.27 48.73 56.31 61.09 70.43 22.11 22.89 23.47 24.26 25.04 25.96 26.83 27.54 28.09 28.73 33.12 36.29 39.08 44.16 49.40 52.55 20-Year Endowment Male $33.22 33.68 34.42 34.90 35.27 35.70 36.49 37.02 37.67 38.23 38.96 39.42 40.19 43.67 48.20 51.11 58.49 71.28 79.15 Female $29.12 30.04 31.28 31.79 32.40 32.93 33.61 34.87 35.30 35.96 36.44 37.21 37.80 39.19 42.25 46.04 49.20 53.16 58.08
Transcribed Image Text:TABLE 19-1 Annual Life Insurance Premiums (per $1,000 of Face Value) Age 18 19 20 21 22 23 24 25 26 27 28 29 30 Male $2.32 2.38 2.43 2.49 2.55 2.62 2.69 2.77 2.84 2.90 2.98 3.07 3.14 5-Year Term 35 3.43 40 4.23 45 6.12 50 9.72 55 16.25 60 24.10 Term Insurance Female $ 1.90 1.96 2.07 2.15 2.22 2.30 2.37 2.45 2.51 2.58 2.64 2.70 2.78 2.92 3.90 5.18 8.73 12.82 19.43 10-Year Term Male $4.33 4.42 4.49 4.57 4.64 4.70 4.79 4.85 4.92 5.11 5.18 5.23 5.30 6.42 7.14 8.81 14.19 22.03 37.70 Female $4.01 4.12 4.20 4.29 4.36 4.42 4.47 4.51 4.60 4.69 4.77 4.84 4.93 5.35 6.24 7.40 9.11 13.17 24.82 Whole Life Male Female $13.22 $11.17 13.60 11.68 14.12 12.09 14.53 14.97 15.39 15.90 16.38 16.91 17.27 17.76 18.12 18.54 12.53 12.96 13.41 13.92 14.38 14.77 15.23 15.66 16.18 16.71 24.19 22.52 27.21 25.40 33.02 29.16 37.94 33.57 45.83 37.02 53.98 42.24 Permanent Insurance 20-Payment Life Female Male $23.14 $19.21 24.42 20.92 25.10 21.50 25.83 26.42 27.01 27.74 28.40 29.11 29.97 30.68 31.52 32.15 37.10 42.27 48.73 56.31 61.09 70.43 22.11 22.89 23.47 24.26 25.04 25.96 26.83 27.54 28.09 28.73 33.12 36.29 39.08 44.16 49.40 52.55 20-Year Endowment Male $33.22 33.68 34.42 34.90 35.27 35.70 36.49 37.02 37.67 38.23 38.96 39.42 40.19 43.67 48.20 51.11 58.49 71.28 79.15 Female $29.12 30.04 31.28 31.79 32.40 32.93 33.61 34.87 35.30 35.96 36.44 37.21 37.80 39.19 42.25 46.04 49.20 53.16 58.08
TABLE 19-1 Annual Life Insurance Premiums (per $1,000 of Face Value) Age 18 19 20 21 22 23 24 25 26 27 28 29 30 Male $2.32 2.38 2.43 2.49 2.55 2.62 2.69 2.77 2.84 2.90 2.98 3.07 3.14 5-Year Term 35 3.43 40 4.23 45 6.12 50 9.72 55 16.25 60 24.10 Term Insurance Female $ 1.90 1.96 2.07 2.15 2.22 2.30 2.37 2.45 2.51 2.58 2.64 2.70 2.78 2.92 3.90 5.18 8.73 12.82 19.43 10-Year Term Male $4.33 4.42 4.49 4.57 4.64 4.70 4.79 4.85 4.92 5.11 5.18 5.23 5.30 6.42 7.14 8.81 14.19 22.03 37.70 Female $4.01 4.12 4.20 4.29 4.36 4.42 4.47 4.51 4.60 4.69 4.77 4.84 4.93 5.35 6.24 7.40 9.11 13.17 24.82 Whole Life Male Female $13.22 $11.17 13.60 11.68 14.12 12.09 14.53 14.97 15.39 15.90 16.38 16.91 17.27 17.76 18.12 18.54 12.53 12.96 13.41 13.92 14.38 14.77 15.23 15.66 16.18 16.71 24.19 22.52 27.21 25.40 33.02 29.16 37.94 33.57 45.83 37.02 53.98 42.24 Permanent Insurance 20-Payment Life Female Male $23.14 $19.21 24.42 20.92 25.10 21.50 25.83 26.42 27.01 27.74 28.40 29.11 29.97 30.68 31.52 32.15 37.10 42.27 48.73 56.31 61.09 70.43 22.11 22.89 23.47 24.26 25.04 25.96 26.83 27.54 28.09 28.73 33.12 36.29 39.08 44.16 49.40 52.55 20-Year Endowment Male $33.22 33.68 34.42 34.90 35.27 35.70 36.49 37.02 37.67 38.23 38.96 39.42 40.19 43.67 48.20 51.11 58.49 71.28 79.15 Female $29.12 30.04 31.28 31.79 32.40 32.93 33.61 34.87 35.30 35.96 36.44 37.21 37.80 39.19 42.25 46.04 49.20 53.16 58.08
Transcribed Image Text:TABLE 19-1 Annual Life Insurance Premiums (per $1,000 of Face Value) Age 18 19 20 21 22 23 24 25 26 27 28 29 30 Male $2.32 2.38 2.43 2.49 2.55 2.62 2.69 2.77 2.84 2.90 2.98 3.07 3.14 5-Year Term 35 3.43 40 4.23 45 6.12 50 9.72 55 16.25 60 24.10 Term Insurance Female $ 1.90 1.96 2.07 2.15 2.22 2.30 2.37 2.45 2.51 2.58 2.64 2.70 2.78 2.92 3.90 5.18 8.73 12.82 19.43 10-Year Term Male $4.33 4.42 4.49 4.57 4.64 4.70 4.79 4.85 4.92 5.11 5.18 5.23 5.30 6.42 7.14 8.81 14.19 22.03 37.70 Female $4.01 4.12 4.20 4.29 4.36 4.42 4.47 4.51 4.60 4.69 4.77 4.84 4.93 5.35 6.24 7.40 9.11 13.17 24.82 Whole Life Male Female $13.22 $11.17 13.60 11.68 14.12 12.09 14.53 14.97 15.39 15.90 16.38 16.91 17.27 17.76 18.12 18.54 12.53 12.96 13.41 13.92 14.38 14.77 15.23 15.66 16.18 16.71 24.19 22.52 27.21 25.40 33.02 29.16 37.94 33.57 45.83 37.02 53.98 42.24 Permanent Insurance 20-Payment Life Female Male $23.14 $19.21 24.42 20.92 25.10 21.50 25.83 26.42 27.01 27.74 28.40 29.11 29.97 30.68 31.52 32.15 37.10 42.27 48.73 56.31 61.09 70.43 22.11 22.89 23.47 24.26 25.04 25.96 26.83 27.54 28.09 28.73 33.12 36.29 39.08 44.16 49.40 52.55 20-Year Endowment Male $33.22 33.68 34.42 34.90 35.27 35.70 36.49 37.02 37.67 38.23 38.96 39.42 40.19 43.67 48.20 51.11 58.49 71.28 79.15 Female $29.12 30.04 31.28 31.79 32.40 32.93 33.61 34.87 35.30 35.96 36.44 37.21 37.80 39.19 42.25 46.04 49.20 53.16 58.08
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