Final answer:
To determine the amount Chloe would save on her [tex]$100,000 policy if she quit smoking, we analyze the impact of her smoking habit on the policy premium, showcasing potential savings by comparing smoker and non-smoker premium costs.
Explanation:
To calculate how much Chloe would save on a $[/tex]100,000 policy if she quit smoking, we need to consider the impact of her smoking habit on the policy premium. Smokers typically pay higher premiums for life insurance policies compared to non-smokers due to the health risks associated with smoking.
Let's say Chloe currently pays [tex]$1,500 annually for her policy as a smoker. If she quits smoking, she could potentially see a significant decrease in her premium. For example, a non-smoker of her age might pay only $[/tex]800 annually for the same policy. This means Chloe would save [tex]$700 ($[/tex]1,500 - $800) per year by quitting smoking.
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