Question

If Jesse wants to buy a $95,000 12-year term life insurance policy, and the annual premium rate (per $1000 of face value) for his age group is $2.78, how much is Jesse's annual premium?

A) $287
B) $234
C) $321
D) $264

Answer 1

The annual premium for Jesse's $95,000 12-year term life insurance policy is $264.

Step-by-step explanation:

The annual premium for Jesse's $95,000 12-year term life insurance policy can be calculated by multiplying the face value of the policy ($95,000) by the annual premium rate ($2.78 per $1000 of face value) and dividing by 1000. This gives us:

Annual premium = ($95,000 * $2.78) / 1000 = $264.10

Therefore, Jesse's annual premium is $264, which corresponds to option D.