Question

Bernard has had some health issues, so he must pay 20% more for life insurance. About how much more annually will a $115,000 10-year term insurance at age 45 cost Bernard than someone of the same age without health issues?

Answer 1

Due to his health issues, Bernard will pay an extra 20% for life insurance. This results in an additional annual cost of $2,300 for a $115,000 10-year term life insurance policy.

Step-by-step explanation:

The question asks about how much more annually Bernard will pay for life insurance due to his health issues. To calculate this, we first determine the additional percentage Bernard has to pay, which is 20%. We then apply this percentage to the original policy amount to find out the extra cost.

Let's calculate the extra cost:

1. First, find 20% of $115,000, which is the policy amount.
   Extra cost = $115,000 × 0.20 = $23,000.
2. The extra cost annually for Bernard over 10 years would be $23,000 / 10 = $2,300 per year.

Thus, because of his health issues, Bernard will pay an additional $2,300 per year for his life insurance compared to someone of the same age with no health issues.