Question

Because Bernard has some health issues, he must pay 15% more for life insurance. About how much more annually will a $115,000 10-year term insurance at age 35 cost Bernard than someone of the same age without health issues?
A 3-column table with 3 rows. Column 1 is labeled age with entries 35, 40, 45. Column 2 is labeled 10-year term, male, with entries 1.40, 1.64, 2.07. Column 3 is labeled 10-year term, female, with entries 1.36, 1.59, 2.01.
a.
$161
b.
$185
c.
$1,073
d.
$24

Answer 1

The male 10-year term rate at age 35 is $1.40 per $1,000. For $115,000 the annual premium = 115 × 1.40 = $161. Fifteen percent more = 0.15 × 161 = $24.15 ≈ $24. Answer: (d) $24.