Question

Jane wish has decided to take a limited payment life policy. She chose this since she expects her income to decline in future years Jane decided to take out a 20 year pay life policy with a coverage amount of 100,000. What was her annual premium be

Answer 1

Jane's annual premium for her limited payment life policy would be $5,000 per year.

Step-by-step explanation:

To calculate the annual premium for Jane's limited payment life policy, we need to consider the coverage amount and the duration of the policy.

In this case, she chose a 20 year pay life policy with a coverage amount of $100,000.

To determine the annual premium, we divide the coverage amount by the number of payment years.

So, Jane's annual premium would be $100,000 divided by 20 years, which equals $5,000 per year.