Determining the Cost of Insurance. Suppose you are 45 and have a $10,000 face amount 15-year, limited payment, participat- ing policy (dividends will be used to build up the cash value of the policy). Your annual premium is $350. The cash value of the policy is expected to be $4,000 in 15 years. Using time value of money and assuming you could invest your money elsewhere for a 7 percent annual yield, calculate the net cost of insurance.