Question

Jeremy is 29 years old and in good health. What is the annual premium for the cheapest policy having a $90,000 face value that Jeremy can buy?
For age 29, a male whole life if 18.25, 20-payment life is 31.39, and 20-year endowment is 39.69.
a.
$1,825
b.
$1,294
c.
$1,929
d.
$1,643

Answer 1

The quoted rates are per $1,000 of face. For $90,000 the annual premiums are:
- Whole life: 90 × 18.25 = $1,642.50 → $1,643 (rounded)
- 20-payment life: 90 × 31.39 = $2,825.10
- 20-year endowment: 90 × 39.69 = $3,572.10

The cheapest is the whole life at $1,643. Answer: d.