Because Bernard has some health issues, he must pay 15% more for life insurance. About how much more annually will a $115,000 10-year term insurance at age 35 cost Bernard than someone of the same age without health issues?
A 3-column table with 3 rows. Column 1 is labeled age with entries 35, 40, 45. Column 2 is labeled 10-year term, male, with entries 1.40, 1.64, 2.07. Column 3 is labeled 10-year term, female, with entries 1.36, 1.59, 2.01.
a.
$161
b.
$185
c.
$1,073
d.
$24
To calculate how much more Bernard will pay annually for life insurance compared to someone without health issues, we need to find the difference in cost for a $115,000 10-year term insurance at age 35.
According to the given table, the cost for a 10-year term insurance at age 35 with no health issues is 1.40 for males and 1.36 for females.
For Bernard, who has health issues, there is a 15% increase in the cost. Therefore, we need to find 15% of the cost without health issues and add it to the original cost.
For males:
15% of 1.40 = 0.15 * 1.40 = 0.21
So the increase in cost for males is 0.21.
For females:
15% of 1.36 = 0.15 * 1.36 = 0.204
So the increase in cost for females is 0.204.
Now, we can calculate the cost for Bernard with health issues:
For males:
Cost with health issues = original cost + increase in cost = 1.40 + 0.21 = 1.61
For females:
Cost with health issues = original cost + increase in cost = 1.36 + 0.204 = 1.564
The question does not specify the gender of Bernard, so we will calculate the cost for both males and females.
For a $115,000 10-year term insurance at age 35, Bernard will pay approximately:
a. For males: $115,000 * 1.61 = $185,150
b. For females: $115,000 * 1.564 = $179,660
Therefore, the answer is either:
a. $185 (rounded to the nearest whole number)
or
b. $180 (rounded to the nearest ten)
So the correct answer is either a. $185 or b. $180.