Lynn Calculated the Future Value of the First Twenty Premiums

question 48

Multiple Choice

Lynn calculated the future value of the first twenty premiums she will pay under her nonparticipating whole life insurance policy.Then she subtracted the cash value after 20 years.Next,she divided this value by the future value annuity due factor for 20 years to arrive at an annual cost of insurance.Finally,she divided the annual cost by the number of thousands of dollars of life insurance purchased to arrive at the cost per thousand per year.Lynn calculated the

• A)traditional net cost per thousand per year.
• B)the Linton Yield.
• C)the surrender cost per thousand per year.
• D)the net payment cost per thousand per year.

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Definitions:

Hemolysis

The rupture or destruction of red blood cells, leading to the release of hemoglobin into the surrounding fluid.

Vitamin K

A vitamin that dissolves in fats, crucial for creating proteins needed for clotting blood and metabolizing bones.

Clotting Factors

Proteins in the blood plasma that work together to stop bleeding by forming a clot.

Prothrombinase

An enzyme complex involved in the blood coagulation process that catalyzes the conversion of prothrombin to thrombin.