Question

Max is 33 and smokes. How much would he save next year on a $75,000 policy if he quit smoking compared to if he continued smoking? Show your work or explain how you got your answer.

Answer 1

Max would save $126 if he quit smoking.

Explanation:

It is given that the age of max is 33.

From the given table it is clear that the monthly premium for every $25000 of coverage for age group 31-40 non smoker male is 5.50 and smoker male is $9.00.

Total yearly premium for $75000 for non smoker male of 33 age is

`P_1=5.50* 3* 12=198`

Total yearly premium for $75000 for smoker male of 33 age is

`P_2=9.00* 3* 12=324`

If he quit smoking then he save

`Saving=P_2-P_1`

`Saving=324-198`

`Saving=126`

Therefore max would save $126 if he quit smoking.