Question

What is the annual premium for $75,000, 10-year life insurance policy for a 40-year-old male (put answer to two decimal places)?

Answer 1

Using the table which gives the annual premium per $1000; the premium paid annually by the 40 year old male is $437.23

• The total annual premium = $75000

Using the data in the table :

Annual premium per $1000 of coverage for a 40-year old male with a 10 - years life insurance policy = $5.83

The annual premium for $75,000 ;

• Premium per $1000 × ($75000/$1000)

Annual premium = $5.83 × ($75,000/1000)

Annual premium = $5.83 × 75 = $437.25

Therefore, the annual premium for the lifetime insurance based on the stated conditions is $437.25

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Answer 2

The annual premium of $75,000 on a 10-year life insurance policy for a 40-year-old male is $433.50.

What is the annual premium?

The annual premium represents the periodic payment that the insured is expected to pay to the insurance company for an insurance policy contract.

The annual premium can be computed using the formula below, though, various insurance companies offer different premiums.

Data and Calculations:

Insured amount = $75,000

Policy duration = 10 years

Policyholder's current age = 40 years

Policyholder's gender = male

The annual premium per $1,000 for a 40-year-old male with a 10-years life insurance policy is $5.78.

Therefore, the annual premium is $433.50 ($75,000/$1,000 x $5.78).

Thus, the annual premium of $75,000 on a 10-year life insurance policy for a 40-year-old male is $433.50.

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