Question

What is the yearly cost per thousand of a 30-year term life policy with a face value of $50,000 if the annual premium is $307.50?

$6.15
$13.20
$3.60
$3.00
$24.00

Answer 1

* The annual premium is $307.50
* The face value of the policy is $50,000
* To find the cost per thousand, we divide the annual premium by the face value and multiply by 1000
* $307.50 / $50,000 * 1000 = $6.15
* The yearly cost per thousand of the policy is $6.15