Question

Jade wants to buy a $200,000 term life insurance policy. She is 34 years old. Using the premium table, what is her annual premium for a 10 year policy?
A 5-column table with 6 rows titled Annual Life Insurance Premium (per 1,000 dollars of face value). Column 1 is labeled age with entries 30, 31, 32, 33, 34, 35. Column 2 is labeled 5-year term male with entries 3.98, 4.08, 4.19, 4.30, 4.42, 4.54. Column 3 is labeled 5 year term female with entries 3.66, 3.76, 3.87, 3.98, 4.10, 4.22. Column 4 is labeled 10-year term male with entries 6.06, 6.13, 6.30, 6.38, 6.45, 6.53. Column 5 is labeled Female with entries 5.72, 5.79, 5.85, 5.93, 6.01, 6.09.
a.
$1,290
b.
$1,202
c.
$6,010
d.
$820

Answer 1

Based on the given table, the annual premium for a 10-year term life insurance policy for a 34-year-old female is $5.93 per $1,000 of face value.

Since Jade wants to buy a $200,000 policy, we need to calculate the premium for $200,000 of face value.

Premium = (Face Value / $1,000) x Annual Premium per $1,000

Premium = (200,000 / 1,000) x 5.93

Premium = 200 x 5.93

Premium = $1,186

Therefore, the annual premium for a $200,000 term life insurance policy for Jade is $1,186. The closest option is option b) $1,202.