Question

15. How much less would a 25 year old male pay for a $50,000 policy of 20 y life insurance @ $5.84 per $1000, than a straight life policy @ $15.66 per $1000? (Points : 1)
$783
$491
$292
$415

Answer 1

Answer: Second option is correct.

Step-by-step explanation:

Since we have given that

Amount for policy = $50,000

If he opt for life insurance @$5.84 per $1000,

then, his amount of premium will be

$50000\times \frac{5.84}{1000}=\ 292$

If he opt for straight policy @ $15.66 per $1000,

then, his amount of premium will be

$50000\times \frac{15.66}{1000}=\ 783$

Difference in both the cases will be

$783-292=\ 491$

Hence, Second option is correct.

Answer 2

The man would pay $491 less for a policy of 20 year life insurance than a straight life policy. So, the answer is the second one.