Question

What would be the premium for a 48 year old female for a straight life, $220,000 policy?

A) $4,923.60
B) $7,018.00
C) $3,863.20
D) $2,272.60

Answer 1

The answer is B - 7,018.00

Answer 2

The premium of $220,000 policy is $7,018.00

B is correct.

Explanation:

A 48 year old female take policy of $220,000 for a straight life.

We are given a table for premium.

We will see the female column of 48 year for straight life.

Table shows the premium per $1000

For 48 year old female straight life policy = $31.90 per $1000

Premium for $1000 policy value = $31.90

Premium for $1 policy value = $0.03190

Premium for $220,000 policy value = $0.03190 x 220000

= $7,018.00

Hence, The premium of $220,000 policy is $7,018.00