Calculate the Value of the Nonforfeiture Options for the Following

question 11

Short Answer

Calculate the value of the nonforfeiture options for the following life insurance policy issued to a female at age 20. $\begin{array}{lllllll}\text { Face Value } & \text { Years in } & \text { Type of } & \text { Cash } & \text { Pad-up } & \text { Extended } & \text { Term } \\\text { of Policy } & \text { Force } & \text { Policy } & \text { Value } & \text { Ins. } & \text { Years } & \text { Day } \\\hline \$ 20,000 & 3 & \text { Whole } & & & & \\&&\text { Life } & & & &\end{array}$

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Definitions:

Excess Liquidity

The situation where an organization or individual possesses more cash resources than are necessary for current operations or investments, potentially indicating underutilization of assets.

Common Shareholders

Shareholders who claim the residual profits and assets of a corporation, and usually have the exclusive power and right to elect the directors of the corporation.

Dividend

A portion of a company's earnings distributed to its shareholders, usually in the form of cash or stock.

Board of Directors

A board of directors is a group of individuals elected to represent shareholders and oversee major decisions of an organization, guiding its strategic direction and ensuring corporate governance.