Question

Some insurance companies charge more if you smoke cigarettes. The difference in the annual life insurance premiums paid by a 35-year-old smoker and a 35-year-old non-smoker, if they both take out a $100000 policy for 20-year term is __

Answer 1

The difference between the smoker and the non-smoker is $151

1000 x $7.85 = $785
1000 x $9.36 = $936
= $151 

Answer 2

Answer:

difference in the annual life insurance premiums paid by a 35-year-old smoker and a 35-year-old non-smoker, if they both take out a $100000 policy for 20-year term is $151.

Step-by-step explanation:

We need to find the difference in smoker and non-smoker at same age 35 year is:

At 35, the annual premium for 20-year for a non-smoker is: 7.85

And 35, the annual premium for 20-year for a  smoker is: 9.36

We have been given a premium value for per 1000

We have$1000\rightarrow 9.36$

That means$1\rightarrow \frac{9.36}{1000}\cdot 100000=936$

Similarly, $1000\rightarrow 7.85$

That means$1\rightarrow \frac{7.85}{1000}\cdot 100000=785$

So, the difference would be: 936-785=151