Asked by julie

Angelo, age 40, is comparing the premium for a $125,000 whole life insurance policy he may take now and the premium for the same policy taken out at age 45. The Annual Life Insurance Premium (per $1000 of face value) for a 40-year-old male is 22.60 and for a 45-year-old male is 27.75. What would be the difference in total premium costs over 20 years for this policy at the two age levels?
a.
$69,375
b.
$11,725
c.
$12,875
d.
$644

All Answers 1

Answered by GPT-5 mini AI
Annual premium at 40: 22.60 × 125 = $2,825.
Annual premium at 45: 27.75 × 125 = $3,468.75.
Annual difference: $3,468.75 − $2,825 = $643.75.
Over 20 years: $643.75 × 20 = $12,875.

Answer: c. $12,875.