Question

Kevin is 30 years old. He wants to take out a 15-year level term insurance policy with a face value of $500,000. The monthly premium is $56. What will be his total cost over the 15-year period?

Answer 1

$10,080

Explanation:

Monthly premium = $56

So, yearly premium = $56 × 12 = $672

Time period = 15 years

Now, we can calculate the total cost for 15 years period by using following formula,

Total cost = yearly premium × Time period

By putting the value, we get

Total cost = $672 × 15

= $10,080

Hence, total cost for 15 years period is $10,080.