Question 6 of 22

Use the table to answer the question.

The sample life insurance premium table illustrates the monthly premium for every $25,000 of coverage.

Age Nonsmoker Male Nonsmoker Female Smoker Male Smoker Female
Under 24 $3.00 $2.50 $4.50 $4.00
24 to 30 $4.00 $3.50 $6.15 $5.25
31 to 40 $5.50 $4.40 $9.00 $6.50
41 to 50 $7.50 $6.75 $13.00 $12.00


What is the insurance premium for a 42-year-old nonsmoking female who wants $125,000 in coverage?

A.
$33.75

B.
$41.50

C.
$58.25

D.
$60.00

1 answer

The premium is $6.75 per $25,000 of coverage for a 42-year-old nonsmoking female, so for $125,000 of coverage, the premium would be:

$6.75 รท $25,000 = $0.00027 per dollar of coverage

$0.00027 x $125,000 = $33.75

Therefore, the answer is A. $33.75.