Jade wants to buy a $200,000 term life insurance policy. She is 34 years old. Using the premium table, what is her annual premium for a 10 year policy?
A 5-column table with 6 rows titled Annual Life Insurance Premium (per 1,000 dollars of face value). Column 1 is labeled age with entries 30, 31, 32, 33, 34, 35. Column 2 is labeled 5-year term male with entries 3.98, 4.08, 4.19, 4.30, 4.42, 4.54. Column 3 is labeled 5 year term female with entries 3.66, 3.76, 3.87, 3.98, 4.10, 4.22. Column 4 is labeled 10-year term male with entries 6.06, 6.13, 6.30, 6.38, 6.45, 6.53. Column 5 is labeled Female with entries 5.72, 5.79, 5.85, 5.93, 6.01, 6.09.
a.
$1,290
b.
$1,202
c.
$6,010
d.
$820
Based on the given table, the annual premium for a 10-year term life insurance policy for a 34-year-old female is $5.93 per $1,000 of face value.
Since Jade wants to buy a $200,000 policy, we need to calculate the premium for $200,000 of face value.
Premium = (Face Value / $1,000) x Annual Premium per $1,000
Premium = (200,000 / 1,000) x 5.93
Premium = 200 x 5.93
Premium = $1,186
Therefore, the annual premium for a $200,000 term life insurance policy for Jade is $1,186. The closest option is option b) $1,202.
To find Jade's annual premium for a 10-year policy, we need to look up her age in the premium table and find the corresponding value for a 10-year term female.
Jade is 34 years old, so we look at the row labeled "34" in the premium table:
Age: 30, 31, 32, 33, 34, 35
Female: 5.72, 5.79, 5.85, 5.93, 6.01, 6.09
The value for a 10-year term female at age 34 is 5.93.
Now we multiply the face value of the policy ($200,000) by the premium rate per $1,000 of face value.
($200,000 / $1,000) x 5.93 = $1,186
Therefore, Jade's annual premium for a 10-year policy is $1,186.
The correct answer is not listed, so there may be an error in the given options.