© 2011 Pearson Education, Inc. W4/11/12 Services Today (Ch. 12.2 – pp. 381-387)
Other Types of Life Insurance pp. 381-383 11-4 SECTION.
-
Upload
coleen-rodgers -
Category
Documents
-
view
215 -
download
2
Transcript of Other Types of Life Insurance pp. 381-383 11-4 SECTION.
![Page 1: Other Types of Life Insurance pp. 381-383 11-4 SECTION.](https://reader035.fdocuments.us/reader035/viewer/2022070403/56649f305503460f94c4a5cb/html5/thumbnails/1.jpg)
Other Types of Life Insurance pp. 381-38311-4SECTIONSECTION
![Page 2: Other Types of Life Insurance pp. 381-383 11-4 SECTION.](https://reader035.fdocuments.us/reader035/viewer/2022070403/56649f305503460f94c4a5cb/html5/thumbnails/2.jpg)
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
2
SECTION
Copyright © Glencoe/McGraw-Hill MBA, Section 11-4, Slide 2 of 18
11-4
whole life insurance (p. 381)
Insurance that offers financial protection throughout one’s lifetime and costs a specific amount, also known as permanent insurance.
cash value (p. 381)
Monetary value that a life insurance policy builds up, like a savings account, that can be cashed in or borrowed.
Key Words to KnowKey Words to Know
![Page 3: Other Types of Life Insurance pp. 381-383 11-4 SECTION.](https://reader035.fdocuments.us/reader035/viewer/2022070403/56649f305503460f94c4a5cb/html5/thumbnails/3.jpg)
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
3
SECTION
Copyright © Glencoe/McGraw-Hill MBA, Section 11-4, Slide 3 of 18
11-4
limited payment policy (p. 381)
Life insurance that is paid up after a specified number of years, or until the insured reaches a certain age, but offers lifetime protection.
Key Words to KnowKey Words to Know
![Page 4: Other Types of Life Insurance pp. 381-383 11-4 SECTION.](https://reader035.fdocuments.us/reader035/viewer/2022070403/56649f305503460f94c4a5cb/html5/thumbnails/4.jpg)
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
4
SECTION
Copyright © Glencoe/McGraw-Hill MBA, Section 11-4, Slide 4 of 18
11-4
universal life insurance (p. 381)
A combination of an insurance policy and a savings plan. It covers the insured for a lifetime, and any amount the insured pays over the minimum goes into an investment account that earns interest.
Key Words to KnowKey Words to Know
![Page 5: Other Types of Life Insurance pp. 381-383 11-4 SECTION.](https://reader035.fdocuments.us/reader035/viewer/2022070403/56649f305503460f94c4a5cb/html5/thumbnails/5.jpg)
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
5
SECTION
Copyright © Glencoe/McGraw-Hill MBA, Section 11-4, Slide 5 of 18
11-4
Annual = Number of Units × PremiumPremium Purchased per $1,000
Formula Formula
![Page 6: Other Types of Life Insurance pp. 381-383 11-4 SECTION.](https://reader035.fdocuments.us/reader035/viewer/2022070403/56649f305503460f94c4a5cb/html5/thumbnails/6.jpg)
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
6
SECTION
Copyright © Glencoe/McGraw-Hill MBA, Section 11-4, Slide 6 of 18
11-4
Filly Cheeze is 25 years old. She wants to purchase a whole life policy valued at $125,000.
What is her annual premium?
Example 1Example 1
![Page 7: Other Types of Life Insurance pp. 381-383 11-4 SECTION.](https://reader035.fdocuments.us/reader035/viewer/2022070403/56649f305503460f94c4a5cb/html5/thumbnails/7.jpg)
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
7
SECTION
Copyright © Glencoe/McGraw-Hill MBA, Section 11-4, Slide 7 of 18
11-4
Find the number of units purchased.
$125,000 ÷ $1,000 = 125
Example 1 Answer: Example 1 Answer: Step 1Step 1
![Page 8: Other Types of Life Insurance pp. 381-383 11-4 SECTION.](https://reader035.fdocuments.us/reader035/viewer/2022070403/56649f305503460f94c4a5cb/html5/thumbnails/8.jpg)
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
8
SECTION
Copyright © Glencoe/McGraw-Hill MBA, Section 11-4, Slide 8 of 18
11-4
Find the premium per $1,000. (Refer to Figure 11.3, Annual Premiums per $1,000 of Life Insurance, on page 382 of your textbook.)
Female, age 25 = $7.50
Example 1 Answer: Example 1 Answer: Step 2Step 2
![Page 9: Other Types of Life Insurance pp. 381-383 11-4 SECTION.](https://reader035.fdocuments.us/reader035/viewer/2022070403/56649f305503460f94c4a5cb/html5/thumbnails/9.jpg)
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
9
SECTION
Copyright © Glencoe/McGraw-Hill MBA, Section 11-4, Slide 9 of 18
11-4
Find the annual premium.
Number of Units Purchased × Premium per $1,000
125 × $7.50 = $937.50
Example 1 Answer: Example 1 Answer: Step 3Step 3
![Page 10: Other Types of Life Insurance pp. 381-383 11-4 SECTION.](https://reader035.fdocuments.us/reader035/viewer/2022070403/56649f305503460f94c4a5cb/html5/thumbnails/10.jpg)
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
10
SECTION
Copyright © Glencoe/McGraw-Hill MBA, Section 11-4, Slide 10 of 18
11-4
Refer to Figure 11.4 below.
Suppose Fhilly Cheeze (from Example 1) wants to pay the $937.50 annual premium monthly.
What are her monthly payments?
How much can she save in one year by paying the premium annually?
Example 2Example 2
![Page 11: Other Types of Life Insurance pp. 381-383 11-4 SECTION.](https://reader035.fdocuments.us/reader035/viewer/2022070403/56649f305503460f94c4a5cb/html5/thumbnails/11.jpg)
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
11
SECTION
Copyright © Glencoe/McGraw-Hill MBA, Section 11-4, Slide 11 of 18
11-4
Figure 11.4Figure 11.4
![Page 12: Other Types of Life Insurance pp. 381-383 11-4 SECTION.](https://reader035.fdocuments.us/reader035/viewer/2022070403/56649f305503460f94c4a5cb/html5/thumbnails/12.jpg)
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
12
SECTION
Copyright © Glencoe/McGraw-Hill MBA, Section 11-4, Slide 12 of 18
11-4
Find the monthly premium.
Annual Premium × 8.5%
$937.50 × 0.085 = $79.6875 or $79.69
Example 2 Answer: Example 2 Answer: Step 1Step 1
![Page 13: Other Types of Life Insurance pp. 381-383 11-4 SECTION.](https://reader035.fdocuments.us/reader035/viewer/2022070403/56649f305503460f94c4a5cb/html5/thumbnails/13.jpg)
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
13
SECTION
Copyright © Glencoe/McGraw-Hill MBA, Section 11-4, Slide 13 of 18
11-4
Find out how much she can save.
(12 × $79.69) – $937.50
$956.28 – $937.50 = $18.78
Example 2 Answer: Example 2 Answer: Step 2Step 2
![Page 14: Other Types of Life Insurance pp. 381-383 11-4 SECTION.](https://reader035.fdocuments.us/reader035/viewer/2022070403/56649f305503460f94c4a5cb/html5/thumbnails/14.jpg)
382:1-13382:1-13