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


Mateo, a 31-year-old nonsmoker, wants to purchase $100,000 in coverage for himself and $75,000 for his spouse, who is female, 30 years old, and does not smoke. What will the insurance premium be?
a. $30.50
b. $32.50
c. $35.50
d. $36.00

1 answer

To calculate the insurance premium for Mateo and his spouse, we must first calculate the premium for Mateo's coverage and then add the premium for his spouse's coverage.

For Mateo:
31-40 age bracket for a nonsmoker male is $5.50 for every $25,000 of coverage.
Mateo wants $100,000 in coverage, so 100,000 / 25,000 = 4 (number of $25,000 increments).
4 * $5.50 = $22.00 premium for Mateo's coverage.

For Mateo's spouse:
24-30 age bracket for a nonsmoker female is $3.50 for every $25,000 of coverage.
Mateo's spouse wants $75,000 in coverage, so 75,000 / 25,000 = 3 (number of $25,000 increments).
3 * $3.50 = $10.50 premium for Mateo's spouse's coverage.

Total premium = $22.00 (Mateo) + $10.50 (Mateo's spouse) = $32.50

Therefore, the insurance premium for Mateo and his spouse will be $32.50, which means the correct answer is b. $32.50.