Jeremy is 29 years old and in good health. What is the annual premium for the cheapest policy having a $90,000 face value that Jeremy can buy?
For age 29, a male whole life if 18.25, 20-payment life is 31.39, and 20-year endowment is 39.69.
a.
$1,825
b.
$1,294
c.
$1,929
d.
$1,643
Based on the information provided, the cheapest policy that Jeremy can buy is the male whole life policy, which has an annual premium of $18.25 per $1,000 of face value.
Since Jeremy wants a $90,000 face value policy, the annual premium for this policy would be calculated as follows:
Annual premium = $18.25 per $1,000 x 90
Annual premium = $1,642.50
Therefore, the correct answer is d. $1,643.
To determine the annual premium for the cheapest policy that Jeremy can buy, we need to compare the prices of the available options: male whole life, 20-payment life, and 20-year endowment.
The annual premium for a male whole life policy at age 29 is $18.25.
The annual premium for a 20-payment life policy at age 29 is $31.39.
The annual premium for a 20-year endowment policy at age 29 is $39.69.
To identify the cheapest policy, we choose the one with the lowest premium. Therefore, the cheapest policy for Jeremy is the male whole life policy with an annual premium of $18.25.
So, the correct answer is:
a. $1,825