Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. bill has a universal life policy that has been enf

Bill has a universal life policy that has been enforced for 3 years. his minimum...

50.1K

Verified Solution

Question

Finance

Bill has a universal life policy that has been enforced for 3 years. his minimum premiums are $131 per month. The fund value in his policy is 3,500. There is a surrender charge of $8,000 in effect for 5 more years on any withdrawals. Recently Bill lost his job and has had difficulty making monthly payments on his policy. Last month his bank reversed the payment because there was not enough money in his bank account. Bill received a notice from the insurance company that he missed a payment. What will happen to Bill's policy if he cannot be the premiums for a few months?

a. The policy will lapse after 30 days with non-payment.

b. Bill can borrow money from the insurance company using the fund value of the policy in order to continue making premium payments.

c. The fund value cannot be used because the surrender charge is greater than the fund value

d. The insurance company will draw down the money in the policy fund until Bill either reestablishes monthly payment, or he has enough Money in the fund to cover premiums.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Calculate the change in pH when 8.00 mL of 0.100 M HCl(aq) is added to 100.0...

Chemistry
Q

Stumptown Health is evaluating a five-year contract to open a primary care clinic on the campus...

Finance
Q

Match the following terms and definitions.1. powerhouse of the cell2. protein producers3. shipping and packaging...

Biology
Q

Let A=(2,2,3), B=(5,-1,4) and C=(1,7,5).a) Find whether vectors A, B and C are linearly dependent/independent.b)...

Geometry
Q

In the following problem check that it is appropriate to use the normal approximation to...

Basic Math
Q

Consultant Aaron Ashton purchased supplies on account for $4,600. Later Ashton paid $3,350...

Accounting
Q

Principal Managerial Chapter 8 x Data table Direct materials...

Accounting
Q

Symphony Electronics produces wireless speakers for outdoor use on patios, decks, etc. Their most popular...

Accounting
Q

Exercise 5-5 Performance obligations [LO5-2, 5-4, 5-5] On March 1, 2018, Gold Examiner receives $158,000...

Accounting
Q

Damien Lawson invests $45,000 to initiate the operation of his business, JumpStart, on January 7th.

Accounting
Q

ASSIGNMENT #3: Cost-Volume-Profit Analysis Parker's sales of its gas grills slumped badly in...

Accounting
Q

(2) Other things equal, an increase in the risk-free rate will Increase call option values...

Finance