Question

The following table gives annual life insurance premiums per $1,000 of face value. Use the table to determine the annual premium for a $110,000 5-year term policy for a 22-year-old female. Round your answer to the nearest cent.

Answer 1

Answer: $244.20

Explanation:

The amounts listed are per $1,000 of coverage so if the coverage is $110,000, first find the number of $1,000 coverages this entails:

= 110,000 / 1,000

= 110

Then multiply this by the cost per $1,000 for a 22 year old female for a 5 year policy:

= 110 * 2.22

= $244.20