Tina Parker, a single mother, is years old. She has called on you for an insurance consultation. Her objective is to purchase life insurance protection for the next years while her children are growing up Tina tells you that she can afford about $ per year for insurance premiums. You have suggested either a year term policy or a whole life policy.
a Using Table rounded to the nearest thousand, how much insurance coverage in $ can Tina purchase under each policy? Hint: Divide her annual premium allowance by the rate per $ for each policy.
year term policy $
whole life policy $
b If she should die in the next years, how much more in $ will her children receive under the term insurance?
$
c Using Table if she should live beyond the th year, determine her nonforfeiture options with the whole life policy.
Option : Cash value in $
$
Option : Reduced Paidup Insurance in $
$
Option : Extended Term Enter your answer in years and an amount of days less than
years, days
