1. Term Life Insurance pp. 378-380 11-3 SECTION

2. 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

3. 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

4. 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

5. 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

6. 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?

7. 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

8. 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

9. 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

10. 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

11. 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 $1,000 50 × $2.47 = $123.50 Example 1 Answer: Step 3

12. 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 45. 5-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

13. 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: $625.50 Annual premium at age 50: $876 Amount of increase: $250.50 Percent increase: 40% Practice 1 Answer

14. 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

15. 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: $266.25 Grant’s annual premium: $308.75 Practice 2 Answer

16. Term Life Insurance 11-3 END OF SECTION