What is the Equivalent Level Annual Dividend?

What is the Equivalent Level Annual Dividend?



a. A level amount per $1,000 of death benefit which if paid at the beginning of each policy year and accrued at 5% interest would be equal to allowing dividends to accumulate at 5% interest to the end of the 5th and 10th years.

b. A level amount per $10,000 of death benefit which if paid at the beginning of each policy year and accrued at 5% interest would be equal to allowing dividends to accumulate at 5% interest to the end of the 10th and 20th years.

c. A level amount per $10,000 of death benefit which if paid at the beginning of each policy year and accrued at 5% interest would be equal to allowing dividends to accumulate at 5% interest to the end of the 5th and 10th years.

d. A level amount per $1,000 of death benefit which if paid at the beginning of each policy year and accrued at 5% interest would be equal to allowing dividends to accumulate at 5% interest to the end of the 10th and 20th years.



Answer: D

Comments

Post a Comment

Popular posts from this blog

Jim has been arrested for drunk driving. In order to be allowed out of jail before his court date, Jim will most likely need:

Jim has been arrested for drunk driving. In order to be allowed out of jail before his court date, Jim will most likely need: Answer: A bail bond Jim will most likely need to post bail to be allowed out of jail before his court date.  Bail is a set amount of money an arrested individual must pay the court to guarantee they will appear for their scheduled hearings and trial dates. By posting bail, Jim can secure his release from jail pending his court appearances. There are several options for posting bail: Cash Bail : Jim or someone on his behalf can pay the total bail amount in cash directly to the court. Once the case is resolved, the bail money is returned minus any fees or fines imposed by the court. Bail Bond : If Jim or his family cannot afford to pay the full bail amount, they may use a bail bond service. A bail bondsman typically charges a non-refundable fee, usually a percentage of the total bail amount, in exchange for posting the full bail amount on Jim's behalf. Th...
Read more

James is the insured on a life insurance policy where his age was misstated on the application. Which of the following is CORRECT regarding the death benefit amount?

James is the insured on a life insurance policy where his age was misstated on the application. Which of the following is CORRECT regarding the death benefit amount?  a) The original face amount will be paid to the beneficiary b) The policy will be voided with no death benefits paid c) The death benefit paid will be what the premium would have purchased at the correct age d) The amount of premiums paid will be returned with interest Answer: c) The death benefit paid will be what the premium would have purchased at the correct age
Read more