558 Chapter 13 Insurance and Risk Management
- $125,000 20-year level term. 35-year-old female preferred. Semiannual premium.
- $175,000 annually renewable term. 35-year-old male smoker. Annual premium. Table B.
- $100,000 annually renewable term. 39-year-old female standard nonsmoker. 150% table rating. Monthly premium.
B. Whole Life Insurance
Refer to the whole life insurance rate table given below for Exercises 11 to 16. Assume that the same semiannual/quarterly/
monthly multiples apply for Trustworthy Mutual’s whole life and term policies.
TRUSTWORTHY MUTUAL LIFE INSURANCE COMPANY
ANNUAL RATES PER $1,000
RATES FOR MINIMUM $100,000 MAXIMUM $249,999
PER $1,000 RATES REDUCED BY 3% FOR ISSUE AMOUNTS $250,000 TO $500,000PARTICIPATING WHOLE LIFE INSURANCE
MALE FEMALE
Age Preferred Standard Smoker Preferred Standard Smoker25 $2.03 $2.49 $3.48 $1.91 $2.05 $2.91
26 $2.07 $2.52 $3.51 $1.93 $2.09 $2.95
27 $2.10 $2.55 $3.55 $1.95 $2.13 $2.96
28 $2.14 $2.59 $3.59 $1.97 $2.17 $3.01
29 $2.17 $2.62 $3.64 $2.00 $2.22 $3.03
30 $2.20 $2.65 $3.72 $2.02 $2.24 $3.08Calculate the insurance premium for each of the following situations:
- Female age 28, standard nonsmoker, $150,000. Annual premium.
- Female smoker, age 30, $225,000. Annual premium.
- Male preferred age 28. $180,000. Quarterly premium.
- $214,500 policy, female standard nonsmoker age 25. Monthly premium.
- $350,000 policy, male standard nonsmoker age 26. Semiannual premium.
- $250,000 policy, male age 27, preferred. Monthly premium.