Presentation on theme: "Peace of Mind Insurance can give you financial security and peace of mind, especially in case of unexpected expenses. When do people use insurance?"— Presentation transcript:
Peace of Mind Insurance can give you financial security and peace of mind, especially in case of unexpected expenses. When do people use insurance?
Lesson Objective Utilize tables to compute the annual premium for term life insurance. Content Vocabulary life insurance Financial protection for a family in case the main source of income dies. term life insurance beneficiary term life insurance Life insurance for a specified term, such as five years, or to a specified age. beneficiary The person who receives money from a life insurance policy if the insured dies.
Ken Calloway is 30 years old. He wants to purchase a $50,000, 5-year term life insurance policy. What is his annual premium? Example 1
Find the number of units purchased. $50,000 ÷ $1,000 = 50 units purchased Example 1 Answer: Step 1
Refer to Figure 11.2 below. Find the premium per $1,000. Example 1 Answer: Step 2
Male, age 30 = $2.47 Figure 11.2
Find the annual premium. Number of Units Purchased × Premium per $1, × $2.47 = $ Example 1 Answer: Step 3
Refer to Figure 11.2 above to find the annual premium for a 5-year term life policy. Male, age year term life. $150,000 coverage. What is the annual premium at age 45? What will be the annual premium at age 50? How much is the increase? What is the percent increase? Practice 1
Annual premium at age 45: $ Annual premium at age 50: $876 Amount of increase: $ Percent increase: 40% Practice 1 Answer
Refer to Figure 11.2 above to find the annual premium for a 5-year term life policy. Heidi and Grant Hill are both 30 years old. They each purchase a 5-year term life insurance policy with $125,000 coverage. What is Heidis annual premium? What is Grants annual premium? Practice 2