Question

How much will you have contributed to a 20-Payment Life insurance policy that has a face value of $45,200 over a 15-year period, given that the permanent insurance amount for a healthy 35-year-old female is $33.12 per thousand.

a.
$45,200
c.
$296,537.40
b.
$22,455.36
d.
$1,497.43

Answer 1

My answer was b. $22,455.36

Answer 2

The correct option is b) $22,455.36

Explanation:

We need to calculate the total amount contribute to a 20-payment life insurance policy.

Given face value is $45,200 over 15-year period and

payment insurance amount for a healthy 35-year old female is $33.12 per thousand

Given that $33.12 per thousand so, $0.03312 per $1

As a face value of $45,200 over 15-year period

so,
`0.03312 * 45200 * 15`

⇒ $22,455.36

Hence, The correct option is b) $22,455.36