Question

Some insurance companies charge more if you smoke cigarettes. The difference in the annual life insurance premiums paid by a 35-year-old smoker and a 35-year-old non-smoker, if they both take out a $100000 policy for 20-year term is __

Answer 1

The difference between the smoker and the non-smoker is $151

1000 x $7.85 = $785
1000 x $9.36 = $936
= $151

Answer 2

difference in the annual life insurance premiums paid by a 35-year-old smoker and a 35-year-old non-smoker, if they both take out a $100000 policy for 20-year term is $151.

Explanation:

We need to find the difference in smoker and non-smoker at same age 35 year is:

At 35, the annual premium for 20-year for a non-smoker is: 7.85

And 35, the annual premium for 20-year for a smoker is: 9.36

We have been given a premium value for per 1000

We have
`1000\rightarrow 9.36`

That means
`1\rightarrow (9.36)/(1000)\cdot 100000=936`

Similarly,
`1000\rightarrow 7.85`

That means
`1\rightarrow (7.85)/(1000)\cdot 100000=785`

So, the difference would be: 936-785=151