Melissa Toby, age 36, bought a straight-life insurance policy for $80,000. Calculate her annual premium. If after 20 years she no longer pays premiums, what nonforfeiture options are available to her?

Question

Quizplus · Accepted Answer

$80,000 / $1,000 = 80 × $10.20 = $816;Option 1: 80 × $265 = $21,200; Option 2: 80 × $550 = $44,000; Option 3: 12 years 300 days.

Melissa Toby, Age 36, Bought a Straight-Life Insurance Policy for $80,000