Question

Use the table above to find the yearly premiums in each of the following cases. Emily Ruth Webster is twenty-seven. She is purchasing twenty-year endowment insurance, with a face value of $25,000. What is her annual premium? 519.50 558.50 1,058.50 1,066.75

Answer 1

Emily Ruth's annual premium is $1058.50

Explanation:

Emily Ruth is a female of 27 years age purchasing 20 year endowment insurance with face value $25000.

From the given table,

For females, the age of a male 3 years younger should be used.

So, we have to check for 24 year male for 20 year endowment.

It is 42.34 for every $1000 face value.

For a face value of $25000,

it is 25 * 42.34 = $1058.50

∴ Emily Ruth's annual premium is $1058.50