If Jesse wants to buy a $75,000 10-year term life insurance policy, and the annual premium rate (per $1000 of face value) for his age group is $2.34, how much is Jesse’s annual premium?

Question

a.
$175.50
b.
$3,205.12
c.
$234.00
d.
$1,755.00

Answer 1

To calculate Jesse's annual premium for the term life insurance policy, you can use the given premium rate and the face value of the policy.

1. Determine the face value in thousands: \[ \text{Face Value} = \frac{75,000}{1,000} = 75 \]

2. Multiply the face value (in thousands) by the annual premium rate per $1,000: \[ \text{Annual Premium} = 75 \times 2.34 = 175.50 \]

So, Jesse's annual premium is $175.50.

The correct answer is: a. $175.50