The traditional net cost per thousand per year is $- 1.92.
The shortfall in the business between premium payments as well as the total of dividend plus the cash equivalent of the insurance constitutes the traditional net cost.
Total premium over 10 years
= 10 x Annual premium
= 10 x 1,278 = $12,780
Cash value = $13,740
Net over 10 year
= 12,780 - 13,740
= -960
Net cost per year
= - 960 / 10
= -96
$50,000 non-participating cost whole life insurance policy
Hence, the traditional net cost per thousand per year
= - 96 / 50,000 x 1,000
= - 1.92
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