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?

| Age | Annual Life insurance Premium (per S1000 of face value) |
|---|---|---|---|---|
| | 5-Year Term | | 10-Year Term |
| | Male | Female | Male | Female |
| 30 | 3.98 | 3.65 | 5.06 | 5.72 |
| 31 | 4.08 | 3.75 | 5.13 | 5.79 |
| 32 | 4.19 | 3.57 | 6.30 | 5.85 |
| 33 | 4.30 | 3.98 | 6.38 | 5.93 |
| 34 | 4.42 | 4.10 | 5.45 | 6.01 |
| 35 | 4.54 | 4.22 | 5.53 | 6.09 |

A. $1,290
B. $1,202
C. $6,010
D. $820

Question

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? 
 
| Age | Annual Life insurance Premium (per S1000 of face value) | 
|---|---|---|---|---| 
| | 5-Year Term | | 10-Year Term | 
| | Male | Female | Male | Female | 
| 30 | 3.98 | 3.65 | 5.06 | 5.72 | 
| 31 | 4.08 | 3.75 | 5.13 | 5.79 | 
| 32 | 4.19 | 3.57 | 6.30 | 5.85 | 
| 33 | 4.30 | 3.98 | 6.38 | 5.93 | 
| 34 | 4.42 | 4.10 | 5.45 | 6.01 | 
| 35 | 4.54 | 4.22 | 5.53 | 6.09 | 
 
A. $1,290 
B. $1,202 
C. $6,010 
D. $820

GinnyAnswer · Answer

Find the premium rate for a 34-year-old female for a 10-year term policy: $5.01 per $1000 . 
 Calculate the number of thousands in the policy amount: $1000 $200 , 000 ​ = 200 . 
 Multiply the premium rate by the number of thousands: $5.01 × 200 = $1002 . 
 Jade's annual premium is $1002 ​ . 
 
 Explanation 
 
 Find the premium rate First, we need to identify the correct premium from the table. Jade is 34 years old and wants a 10-year policy. Looking at the table, the premium for a 34-year-old female for a 10-year term policy is $5.01 per $1000 of face value. 
 
 Calculate the number of thousands Next, we need to determine how many thousands of dollars are in the $200 , 000 policy. To do this, we divide the total policy value by 1000: 1000 200 , 000 ​ = 200 
 
 Calculate the total premium Now, we multiply the premium per thousand dollars ( $5.01 ) by the number of thousands (200) to find the total annual premium: 5.01 × 200 = 1002 
 
 State the final answer Therefore, Jade's annual premium for a $200 , 000 10-year term life insurance policy is $1002 .

Examples 
 Understanding life insurance premiums can help you make informed financial decisions. For example, if you're planning for your family's future, knowing how premiums are calculated allows you to budget effectively. Comparing different policy terms and coverage amounts helps you find the best balance between cost and protection. This knowledge is also useful when evaluating investment options or planning for retirement, ensuring you have a comprehensive financial strategy.

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