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21 September, 22:38

Richard Henry takes out $25,000 of ordinary whole life when he is forty-three years old. a. annual premium b. semiannual premium

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  1. 21 September, 23:06
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    a. annual premium

    Step-by-step explanation:

    Annual Premium are mainly used in long term insurance. Whole life assurance is a good example of Long term insurance, the assured is required to stop to pay the Insurance company premium on the Policy as soon as the the Life assured reach 65 years of age, as stipulated by the policy condition.

    Annual premium is required as mode of premium payment over Monthly payment because it is easily used by Life offices for invest in Money and Capital Market.
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