An insured 25 year old purchased a $100,000, 20-year endowment policy with premiums payable semiannually. Compute the amount the insured paid the insurance company in premiums during his lifetime. Refer to Table 12-1. (1 year = 12 months.)

Learning Objectives

• Master the basic principles and arithmetic operations relevant to life insurance policies, including the analysis of payment plans and their long-lasting fiscal implications.
• Review the fiscal outcomes of diverse insurance plans on policyholders over extended periods.