Question

Allan purchased $135,000 of 10 year life insurance @ $4.55 per $1000, at age 35. what will be his total premiums over the 10 years?

Answer 1

It is 6,142.5$

Explanation:

You use the basic equation 135,000/1,000 and get 135 you then take this and multiply it by 4.55$ this gives you 614.25$ which is the price for one year so you then have to multiply this by 10 giving you 6,142.5$.

Answer 2

Given,
Policy Value = $135000
Duration = 10 years
Premium= $4.55 per 1000 per year
Calculation,
So, yearly premium for $135000 = (4.55/1000)*135000 = 614.25
So, premium over 10 years for $135000 = 614.25*10 = $6142.5
Answer. Total premium over 10 years that Allan will have to pay = $6142.5