An insured 25 year old purchased a $50,000, 20-payment life policy. Four years later he needed the maximum loan available on the policy. Compute the amount the insured could borrow. Refer to Tables 12-1 and 12-2. (1 year = 12 months.)

Loan Available

The amount of money that a lender is willing to provide to a borrower under agreed conditions.

Life Policy

An insurance agreement that provides financial compensation to a designated beneficiary upon the insured individual’s death.

Insured

A person, organization, or entity covered under an insurance policy, protecting them against specific risks or losses.