Question

Determine the term life insurance amount per thousand on a 23-year-old male for a 5-year policy given that the face value of the policy is $151,625 and the annual premium is $397.26. Round your answer to the nearest cent.

Answer 1

The answer is 2.62

Explanation:

Given information is :

The face value of the policy is $151,625

Per thousand this value becomes =
`(151625)/(1000)=151.625`

The annual premium is = $397.26

The term life insurance amount per thousand will be =

`(397.26)/(151.625)` = 2.62

Hence, the answer is 2.62.

Answer 2

$2.62

Explanation:

The rate per thousand is ...

... (premium amount)/(number of thousands of face value)

... = $397.26/151.625 ≈ $2.62