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The face value of the largest 20-year term policy which Maria can buy without spending more than $300 annually is $158,000.
<h3>What is face value?</h3>Face is the term used in finance, is used for the amount which has to be paid to the policyholder at the time of maturity.
Maria, age 28, wants to pay no more than $300 a year in life insurance.
The period for this policy is 20-year term.
Annual life insurance premium (per 1,000 dollars of face value) for age 28.
- A 10-year term for female is 1.28,
- A 15 year term for female is 1.54,
- A 20 year term for female is 1.89,
- A whole life for female is 9.46.
For the 20 year term for female is 1.89 and annular premium is $300. Thus, the face value is,
Thus, the face value of the largest 20-year term policy which Maria can buy without spending more than $300 annually is $158,000.
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