Participating ordinary life policy for $10,000 is sold to an individual, age 35. The following cost data are given:
- Annual premium is $230
- Total dividends for 20 years is $1613
- Cash value at end of 20 years is $3620
- Accumulated value of the annual premiums at 5 percent for 20 years .is $7985
- Accumulated value of the dividends at 5 percent for 20 years is $2352
- Amount to which $1 deposited annually at the beginning of each year will accumulate in 20 years at 5 percent is $34.719
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- Calculate the annual net cost per $1000 of life insurance at the end of 20 years using the traditional net cost method.
- Calculate the annual surrender cost index per $1000 of life insurance at the end of 20 years.
- Calculate the annual net payment cost index per $1000 of life insurance at the end of 20 years.
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