Your father, at the age of 40, purchased a Whole Life insurance policy with a face value of $110,000. The permanent insurance amount for a Whole Life insurance policy for a healthy 40-year-old male is $27.17. Your father decided to terminate the policy at the age of 47. Determine the annual premium and use the table below to determine the value of the Extended term insurance policy. A 5-column table with 4 rows titled Whole Life Options. Column 1 is labeled End of Year with entries 3, 5, 7, 10. Column 2 is labeled option 1 cash value with entries 7 dollars, 21, 45, 65. Column 3 is labeled option 2 reduced paid-up insurance with entries 18, 50, 96, 150. Column 4 is labeled extended term years with entries 1, 6, 10, 15. Column 5 is labeled Extended term days with entries 180, 15, 40, 200.
a.
Annual Premium of $2,988.7; 10 years and 40 days
c.
Annual Premium of $3,215.33; 6 years and 15 days
b.
Annual Premium of $3,110.12; 15 years and 200 days
d.
Annual Premium of $3,280.78; 1 years and 180 days