Question

Grace's employer is now offering group-term life insurance. The company will provide each employee with 200,000 of group-term life insurance. It costs Grace's employer 700 to provide this amount of insurance to Grace each year. Assuming that Grace is 43 years old, use the table to determine the monthly premium that Grace must include in income as a result of receiving the group-term life benefit?

1) 0
2) 15.00
3) 22.00
4) 58.33

Answer 1

Grace's monthly premium for the group-term life benefit is $15.00. The correct option is: 2) 15.00.

Step-by-step explanation:

Grace's monthly premium for the group-term life benefit can be calculated using the Table I Rates for Employer-Provided Group-Term Life Insurance. The monthly premium is determined based on the employee's age and the amount of coverage. Since Grace is 43 years old and the coverage amount is $200,000, we can find the monthly premium on the table.

According to the table, the monthly premium for a 43-year-old employee with $200,000 coverage is $0.15 per $1,000. So, for $200,000 coverage, the monthly premium is:

$0.15 x 200 = $30

The correct option is 2) $15.00.