Question

What is a return of premium (ROP) term life insurance policy? Explain how a ROP policy...

What is a return of premium (ROP) term life insurance policy? Explain how a ROP policy works in relation to a regular term life insurance.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. An insurance company sells a $90,000 one-year term life insurance policy for a premium of...
1. An insurance company sells a $90,000 one-year term life insurance policy for a premium of $458. Find the expected value to the company of a single policy if 99.53% of the insured people survive one year. A. $35 B. $55 C. $458 D. $89,542 2. 47% of all people in a community favor the development of a mass transit system, while only 18% of the people in that community both favor it and do not own a car. If...
1.A man purchased a $21,000, 1-year term-life insurance policy for $350. Assuming that the probability that...
1.A man purchased a $21,000, 1-year term-life insurance policy for $350. Assuming that the probability that he will live for another year is 0.985, find the company's expected net gain. 2.A man wishes to purchase a life insurance policy that will pay the beneficiary $20,000 in the event that the man's death occurs during the next year. Using life insurance tables, he determines that the probability that he will live another year is 0.95. What is the minimum amount that...
A $200,000 life insurance term policy costs $150 for 5 years of coverage for a 30...
A $200,000 life insurance term policy costs $150 for 5 years of coverage for a 30 year old male. If the male dies during those 5 years, the insurance company pays their family $200,000. If he survives those 5 years, the insurance company will have collected the $150 premium. The insurance company knows a 30 year old has a 0.000176 probability of dying over 5 years. What is the expected profit for the insurance company on this policy?
An insurance company sells a $12,000, five-year term life insurance policy to an individual for $640....
An insurance company sells a $12,000, five-year term life insurance policy to an individual for $640. Find the expected return for the company if the probability the individual will live for the next five years is 0.98. (Round your answer to the nearest cent.)
An insurance company offers a $120,000 term life policy lasting 2 years to a man of...
An insurance company offers a $120,000 term life policy lasting 2 years to a man of average health aged 50. To value the policy, the company has four conditions: (1) the yearly interest or discount rate is 4%, (2) the compounding or discounting is done every 6 months, (3) the premium is made once at the start of a year, and (4) the payout occurs at the end of a year. What is the company’s break-even yearly premium?
A customer buys a $250,000 life insurance policy with an annual premium of $600. Her probability...
A customer buys a $250,000 life insurance policy with an annual premium of $600. Her probability of dying during the year is 0.002. If she dies, the insurance company will have to give her beneficiary $250,000. Calculate the insurance company’s expected value for this policy. And what does the expected value represent?
Suppose a life insurance company sells a ​$190,000 ​one-year term life insurance policy to a 20​-year-old...
Suppose a life insurance company sells a ​$190,000 ​one-year term life insurance policy to a 20​-year-old female for ​$330. The probability that the female survives the year is 0.999502. Compute and interpret the expected value of this policy to the insurance company.
Sonja, age 25, recently purchased a $100,000 ordinary life insurance policy on her life. The waiver-of-premium...
Sonja, age 25, recently purchased a $100,000 ordinary life insurance policy on her life. The waiver-of-premium rider and guaranteed purchase option are attached to the policy. For each of the following situations, indicate the extent of the insurer’s obligation, if any, to Sonja or to Sonja’s beneficiary. Identify the appropriate policy provision or rider that applies in each case. Treat each event separately. a. Sonja fails to pay the second annual premium due on January 1. She dies 15 days...
And insurance company sales a one year term life insurance policy to an 80-year-old woman. The...
And insurance company sales a one year term life insurance policy to an 80-year-old woman. The woman pays a premium of $1000. If she dies within one year the company will pay $20,000 to her beneficiary. According to the US centers for disease control and prevention the probability that a 80-year-old woman will be a live one year later is 0.9516. But X be the profit made by the insurance company. Found the probability distribution in the ass but the...
a 30 -year old woman purchases a $200,000 term life insurance policy for an annual payment...
a 30 -year old woman purchases a $200,000 term life insurance policy for an annual payment of $460. Based on a period life table for the U.S. Government, the probability that she will survive the year is 0.999051. Find the expected value of the policy for the insurance company. Round to two decimal places for currency problems.