Cheryl purchased a whole life insurance policy having a face value of $425,500 w

Question

Cheryl purchased a whole life insurance policy having a face value of $425,500 when she was 30 years old. Based on Table 19-3 from your text, what is the cash value of her policy if she is now 40 years old?

a.) $42,257

b.) $40,262

c.) $41,699

d.) $41,134

a.) $42,257

b.) $40,262

c.) $41,699

d.) $41,134

Luminis Platform 5.2.1 L x E-Book BUAD3301 96 x Bookshelf Online: Conte x Chegg Study Guided S X C Cheryl purchased A Wh x XM (no subject) yazmin to x 3 C La Secure https://online vitalsource.com/w/books/9781305886803/cfi/663!/4/400.00:0.00 646 CHAPTER 19. INSURANCE TABLE 19 Nonforfeiture options (per $1.000 of ace value a woman at Age 20) Issued to Whole Life Options 20-Payment Life Options 20-Year Endowment options Extended Reduced Extended Reduced Reduced Term Cash Paid-Up Extended End Term Term of Cash Paid-Up Cash Paid-Up Year Value Insurance Years Days value Insurance Years Days value Years Days Insurance 11 25 17 29 90 4 217 39 97 132 32 23 73 212 86 91 233 99 13 142 01 367 23 152 186 381 26 310 496 30 206 324 512 32 98 186 17 191 15 157 21 218 322 789 37 350 262 77 505 1,000 1,000 1,000 20 491 Life TO CALCULATE THE VALUE OF VARIOUS NONFORFEITURE OPTIONS STEP 1. Calculate the number of $1,000 of insurance by dividing the face value of the policy by SI,000. O Type here to search

Explanation / Answer

(a) per 1000 of face value. Thus, face value per 1000 = 425.50

In the table, we should look at:

Whole Life options

End of year 10

Value given in 4th row o "Whole Life Options", "Cash value":

98.

So, cash value of her policy = 425.50 X 98 = 41,699

So, correct option:

c) 41,699

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