Copyright © 2008, The McGraw-Hill Companies, Inc.
Refer to the table below for Exercises 17 to 22. This table of nonforfeiture options was provided with the issue of a $50,000
death benefi t life insurance policy.End of
Contract YearCash Value
(per $1,000)RPU
(per $1,000)EXTENDED TERM
Years Days1$0$ 000
2$0$ 000
3 $14 $42 2 100
4 $39 $112 7 32
5 $48 $132 10 63
6 $60 $145 13 48
7 $75 $165 17 19
8 $95 $198 17 321
9 $108 $235 18 96
10 $125 $266 19 105
Age 65 $575 $809 16 33Calculate the nonforfeiture value of the policy if it is surrendered:- At the end of year 5 for cash value.
- At the end of year 2 for cash value.
- At the end of year 7 for RPU.
- At age 65 for RPU.
- At the end of year 7 for extended term.
- At the end of year 5 for extended term.
C. Universal Life Insurance- A universal life policy has a $300,000 death benefi t. The account value is currently $5,792. What is the net amount
at risk?
Exercises 13.3 559