Question

What is the insurance premium for a 42-year old nonsmoking female ($6.75) who wants $125,000 in coverage?

Answer 1

Answer:

The question is missing the sample life insurance premium illustration  as found in the attached.

The correct option based on the below calculation is A,$33.75

Step-by-step explanation:

A female non-smoker  who wanted a coverage of $25,000 as found in attached the sample life insurance premium illustration would pay $6.75 in premium.

Based on the above, a female non-smoker who wanted a coverage of $125,000 has it premium computed thus:

premium=$125,000/$25,000*$6.75

premium=5*$6.75=$33.75

The correct option is A,$33.75

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Answer 2

Answer:

The insurance premium for a 42-year old nonsmoking female who wants $125,000 in coverage is $33.75. The right answer is a.

Step-by-step explanation:

In order to calculate the insurance premium for a 42-year old nonsmoking female who wants $125,000 in coverage we would have to use the following formula:

insurance premium= (coverage amount/monthly premiun amount)*$6.75

Therefore, insurance premium= ($125,000/$25,000)×$6.75

insurance premium= $33.75

The insurance premium for a 42-year old nonsmoking female who wants $125,000 in coverage is $33.75