Jim Smith, Age 25, Buys a Straight-Life Policy for $105,000

question 54

Essay

Jim Smith, age 25, buys a straight-life policy for $105,000. What is his annual premium? If after 15 years he no longer wants to pay the premium, what nonforfeiture values are available to him?

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Definitions:

Positive Numbers

Numbers that are greater than zero, illustrating values that represent quantities or measurements.

Negative Numbers

Integers that are less than zero, often used to represent a deficit or decrease in mathematical operations and real-world contexts.

Harmful Sexual Disorder

A problematic pattern of sexual thoughts or actions that are dangerous or injurious to oneself or others, not officially recognized as a distinct diagnosis.

Sexual Violence

Involves any sexual act or attempt to obtain a sexual act by violence or coercion, acts to traffic, or acts directed against a person's sexuality, regardless of the relationship to the victim.