Term Life Insurance pp SECTION
Click to edit Master text styles Second level Third level Fourth level Fifth level 2 SECTION Copyright © Glencoe/McGraw-Hill 11-3 Section Objective Utilize tables to compute: annual premium for term life insurance
Click to edit Master text styles Second level Third level Fourth level Fifth level 3 SECTION Copyright © Glencoe/McGraw-Hill 11-3 life insurance (p. 378) Financial protection for a family in case a family member dies. term life insurance (p. 378) Life insurance for a specified term, such as five years, or to a specified age, that ends unless the policy is renewed. Key Words to Know
Click to edit Master text styles Second level Third level Fourth level Fifth level 4 SECTION Copyright © Glencoe/McGraw-Hill 11-3 beneficiary (p. 378) A person who receives the money from life insurance if the insured dies. Key Words to Know
Click to edit Master text styles Second level Third level Fourth level Fifth level 5 SECTION Copyright © Glencoe/McGraw-Hill 11-3 Annual = Number of Units × Premium Premium Purchased per $1,000 Formula
Click to edit Master text styles Second level Third level Fourth level Fifth level 6 SECTION Copyright © Glencoe/McGraw-Hill 11-3 Insuring Your Life p. 378 What is the difference between term and life insurance?
Click to edit Master text styles Second level Third level Fourth level Fifth level 7 SECTION Copyright © Glencoe/McGraw-Hill 11-3 Ken Calloway is 30 years old. He wants to purchase a $50,000, 5-year term life insurance policy. What is his annual premium? Example 1
Click to edit Master text styles Second level Third level Fourth level Fifth level 8 SECTION Copyright © Glencoe/McGraw-Hill 11-3 Find the number of units purchased. $50,000 ÷ $1,000 = 50 units purchased Example 1 Answer: Step 1
Click to edit Master text styles Second level Third level Fourth level Fifth level 9 SECTION Copyright © Glencoe/McGraw-Hill 11-3 Refer to Figure 11.2 below. Find the premium per $1,000. Example 1 Answer: Step 2
Click to edit Master text styles Second level Third level Fourth level Fifth level 10 SECTION Copyright © Glencoe/McGraw-Hill 11-3 Male, age 30 = $2.47 Figure 11.2
Click to edit Master text styles Second level Third level Fourth level Fifth level 11 SECTION Copyright © Glencoe/McGraw-Hill 11-3 Find the annual premium. Number of Units Purchased × Premium per $1, × $2.47 = $ Example 1 Answer: Step 3
Click to edit Master text styles Second level Third level Fourth level Fifth level 12 SECTION Copyright © Glencoe/McGraw-Hill 11-3 Refer to Figure 11.2 above to find the annual premium for a 5-year term life policy. Male, age year term life. $150,000 coverage. What is the annual premium at age 45? What will be the annual premium at age 50? How much is the increase? What is the percent increase? Practice 1
Click to edit Master text styles Second level Third level Fourth level Fifth level 13 SECTION Copyright © Glencoe/McGraw-Hill 11-3 Annual premium at age 45: $ Annual premium at age 50: $876 Amount of increase: $ Percent increase: 40% Practice 1 Answer
Click to edit Master text styles Second level Third level Fourth level Fifth level 14 SECTION Copyright © Glencoe/McGraw-Hill 11-3 Refer to Figure 11.2 above to find the annual premium for a 5-year term life policy. Heidi and Grant Hill are both 30 years old. They each purchase a 5-year term life insurance policy with $125,000 coverage. What is Heidi’s annual premium? What is Grant’s annual premium? Practice 2
Click to edit Master text styles Second level Third level Fourth level Fifth level 15 SECTION Copyright © Glencoe/McGraw-Hill 11-3 Heidi’s annual premium: $ Grant’s annual premium: $ Practice 2 Answer
Term Life Insurance 11-3 END OF SECTION