LIFE INSURANCE

TERM INSURANCE

• You only buy for a limited number of years (ex: 10 yrs.)

• Cheaper.• Cannot cash it out.

WHOLE-LIFE INSURANCE• You purchase it for the rest

of your life.• More expensive. • You can cash it out (and get

some money back).

What the family receives…

*If the person passes away during a contract, the “beneficiaries” get the whole contract amount.

(Ex: $300 000 or even $1 000 000.)But, if the person passes away after a term contract is over, the family

gets nothing.The amount the family gets is:

-“All or nothing!” -It does not matter how many payments you made or how old you

are or if you are male or female, etc.-It is a flat rate.-It is not a calculation! -It is not related to how much you paid each year.

Steps:These steps are the same for both charts:• Find chart number• X $000’s• +75Ex: $200 000 policy:COST PER YEAR=$200 X chart + 75 = ?

Payment Plans(Note: Monthly = x 0.09) (NOT ÷ 12)(Note: Semi-annual = x 0.52)(Note: Do this extra step using your full year amount after the $75.)***Note: Payments plans are more affordable but cost more overall!

‘Cash Surrender’aka ‘Cash Out’

(Note: This offer only applies to WHOLE LIFE.)

How to use the chart:

• ‘Policy Year’ (middle column) = # of yrs you had the contract = your age when you want to cash out MINUS the age when you started the contract.

• ‘Issue Age’ (top heading)= your age when you started contract.

• Cash back amount = chart x $000’s (same steps as usual!)

‘Cash Surrender’aka ‘Cash Out’

• You may get more or less than you paid into the contract so far.

• The longer you have had the contract the more you will get!

• Note: There is no $75 fee or monthly calculations at the bottom of this chart!

Answers:

#6.a) $222.20 b) $2265 c) $2919 d) $873#7.a) $507 b) $1521 c) $300000 d) 0! Contract is over.#8.a) $287.80 b) $25.90 c) $23#9.a) $588 b) $1065 c) $477#10.a) $591 b) $2035 c) $1444#11.a) $1465.80 b) $762.22 twice a yr ($1524.44 total)

c)$43320#12.a) $1497 b) $15600 c) $54400

d) $38800 e) $14970