Question

Bruce Lovegren was born on September 27, 1950.

On
April 14, 1977, he purchased a $15,000 10-year term
life insurance policy.
a. What was his age for insurance purposes?
b. What was the annual.premium he paid?

Answer 1

Explanation:

a1. Take big year number (1977).

a2. Subtract smaller year number (1950).

a3. Since September 27th hasn't yet passed, you can subtract 1 year.

1977 - 1950 = 27 - 1 = 26

b1. Take total amount of 10-year insurance policy (15,000).

b2. Divide by the length of time (10 years) to find the yearly amount or premium.

$15,000 / 10 years = $1,500 per year