Matt Clark, age 27, decided to take out a limited payment life policy. He chose this because he expects his income to decline in future years. Matt decided to take out a 20-year payment life policy with a coverage amount of $90,000. Calculate his annual premium. If he stops paying premiums after 15 years, what will his cash value be?

Question

Quizplus · Accepted Answer

($90,000 / $1,000)× $10.70 = $963; Cash value: $90,000 / $1,000 = 90 × $317 = $28,530.

Matt Clark, Age 27, Decided to Take Out a Limited