Joe's premium for a 15-year term policy is $3.32 per $1,000 of coverage, so his premium for a $300,000 policy is 300 * $3.32 = $996.
Melinda's premium for a 20-year term policy is $4.96 per $1,000 of coverage, so her premium for a $300,000 policy is 300 * $4.96 = $1,488.
The total premiums for Joe and Melinda in the first year is $996 + $1,488 = $2,484.
Therefore, the answer is b. $2,484.
After getting married, Joe, 32, and Melinda, 29, decide to take out life insurance policies. Joe would like a 15-year term policy and Melinda would like a 20-year term policy. They each want a $300,000 policy. How much can Joe and Melinda expect to pay in premiums the first year?
For age 32, a male 15-year term policy is 3.32 and 20-year term is 5.45. For age 29, a female 15-year term is 2.58 and 20-year term is 4.96.
a.
$2,478
b.
$2,484
c.
$1,488
d.
$2,409
1 answer