Question

15. How much less would a 25 year old male pay for a $50,000 policy of 20 y life insurance @ $5.84 per $1000, than a straight life policy @ $15.66 per $1000? (Points : 1)

$783
$491
$292
$415

Answer 1

The man would pay $491 less for a policy of 20 year life insurance than a straight life policy. So, the answer is the second one.

Answer 2

Answer: Second option is correct.

Explanation:

Since we have given that

Amount for policy = $50,000

If he opt for life insurance @$5.84 per $1000,

then, his amount of premium will be

`50000* (5.84)/(1000)=\$292`

If he opt for straight policy @ $15.66 per $1000,

then, his amount of premium will be

`50000* (15.66)/(1000)=\$783`

Difference in both the cases will be

`783-292=\$491`

Hence, Second option is correct.