Death benefit to be purchased for set amount of premium

Assignment Help Financial Management

Reference no: EM131020235

Which of the following types of life insurance allows the greatest amount of death benefit to be purchased for a set amount of premium?

a. term insurance

b. level-premium whole life insurance

c. limited-pay whole life insurance

d. single premium whole life insurance

Reference no: EM131020235

Questions Cloud

What is capital gain or loss on bond-yield to maturity rises : You own a bond with the following features: 7 years to maturity, face value of $1000, coupon rate of 3% (annual coupons) and yield to maturity of 2.8%. Just after you purchase the bond, the yield to maturity rises to 5.4%. What is the capital gain or..

Investors would otherwise require on a newly issued bond : Listed below are some provisions that are often contained in bond indentures. Which of these provisions, viewed alone, would tend to reduce the yield to maturity that investors would otherwise require on a newly issued bond?

Net futa tax and suta tax : Assume that in 2016, an employer had charged the wages account for $79,850. Of this amount, $720 will not be paid until the first payday in 2017. Further, the wages actually paid to employees in 2016 in excess of $7,000 each amounted to $29,840. Net ..

Living standard that is relatively high for their income : For families with young children or couples with a living standard that is relatively high for their income, the amount of insurance needed will be high. As a result,

Death benefit to be purchased for set amount of premium : Which of the following types of life insurance allows the greatest amount of death benefit to be purchased for a set amount of premium?

Regarding the legal aspects of a life insurance contract : Which of the following statements is true regarding the legal aspects of a life insurance contract?

Risk and return is a classic item in finance : Risk and return is a classic item in finance. You would like to estimate what the return on General Electric stock could be given its beta of 1.68. Other data you have collected: the rate of return on 90-day T-Bills is 2%, on 5 year T-Notes is 3%, an..

Expect the price of the bond to be in two years : You own a bond with the following features: 7 years to maturity, face value of $1000, coupon rate of 2% (annual coupons) and yield to maturity of 8.2%. If you expect the yield to maturity to remain at 8.2%, what do you expect the price of the bond to..

Taxes per year in order processing costs : Your firm is contemplating the purchase of a new $575,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $59,000 at the end of that time. You will save $265,000 before..

User Account

All Pages