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Peace of Mind Insurance can give you financial security and peace of mind, especially in case of unexpected expenses. When do people use insurance?

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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:

1 Peace of Mind Insurance can give you financial security and peace of mind, especially in case of unexpected expenses. When do people use insurance?

2 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.

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4 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

5 Find the number of units purchased. $50,000 ÷ $1,000 = 50 units purchased Example 1 Answer: Step 1

6 Refer to Figure 11.2 below. Find the premium per $1,000. Example 1 Answer: Step 2

7 Male, age 30 = $2.47 Figure 11.2

8 Find the annual premium. Number of Units Purchased × Premium per $1, × $2.47 = $ Example 1 Answer: Step 3

9 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

10 Annual premium at age 45: $ Annual premium at age 50: $876 Amount of increase: $ Percent increase: 40% Practice 1 Answer

11 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

12 Heidis annual premium: $ Grants annual premium: $ Practice 2 Answer


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