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

Use the 10-year term female rate at age 34: 6.01 per $1,000.

Premium = (200,000 / 1,000) × 6.01 = 200 × 6.01 = $1,202.

Answer: b. $1,202