IDNLearn.com: Your trusted source for finding accurate answers. Join our Q&A platform to access reliable and detailed answers from experts in various fields.

Jade wants to buy a [tex]\[tex]$200,000[/tex] term life insurance policy. She is 34 years old. Using the premium table, what is her annual premium for a 10-year policy?

\begin{tabular}{|l|l|l|l|l|}
\hline
\multirow{2}{*}{Age} & \multicolumn{4}{|l|}{Annual Life Insurance Premium (per [tex]\$[/tex]1000[/tex] of face value)} \\
\cline{2-5}
& \multicolumn{2}{|l|}{5-Year Term} & \multicolumn{2}{|l|}{10-Year Term} \\
\hline
& Male & Female & Male & Female \\
\hline
30 & 3.98 & 3.66 & 6.06 & 5.72 \\
\hline
31 & 4.98 & 3.76 & 6.13 & 5.79 \\
\hline
32 & 4.19 & 3.87 & 6.30 & 5.85 \\
\hline
33 & 4.30 & 3.98 & 6.38 & 5.93 \\
\hline
34 & 4.42 & 4.10 & 6.45 & 6.01 \\
\hline
35 & 4.54 & 4.22 & 6.53 & 6.09 \\
\hline
\end{tabular}

a. [tex]\[tex]$1,290[/tex]
b. [tex]\$[/tex]1,202[/tex]
c. [tex]\[tex]$6,010[/tex]
d. [tex]\$[/tex]820[/tex]

Please select the best answer from the choices provided.


Sagot :

To determine Jade's annual premium for her \[tex]$200,000 term life insurance policy with a 10-year term, we need to use the following details from the provided table: 1. Jade is 34 years old. 2. We are looking at the premium for a 10-year term policy for females. 3. The premium per \$[/tex]1000 of face value for females aged 34 on a 10-year term is \[tex]$6.01. Now, let's calculate the annual premium step by step: 1. Face Value of the Policy: Jade wants to buy a term life insurance policy with a face value of \$[/tex]200,000.

2. Premium per \[tex]$1000 of Face Value: For a 34-year-old female on a 10-year term policy, the premium per \$[/tex]1000 is \[tex]$6.01. 3. Calculation: We need to find out the total premium by multiplying the premium rate per \$[/tex]1000 by the number of \[tex]$1000 increments in the total face value. - Total face value of the insurance = \$[/tex]200,000
- Number of \[tex]$1000 increments in \$[/tex]200,000 = \[tex]$200,000 / \$[/tex]1000 = 200

The total premium is calculated as:
[tex]\[ \text{Annual Premium} = \text{Number of \$1000 increments} \times \text{Premium per \$1000} \][/tex]
[tex]\[ \text{Annual Premium} = 200 \times \$6.01 \][/tex]
[tex]\[ \text{Annual Premium} = \$1202.00 \][/tex]

Therefore, Jade's annual premium for a \[tex]$200,000 term life insurance policy with a 10-year term is \$[/tex]1202.00.

The best answer from the choices provided is:

b. \$1,202