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Jade wants to buy a [tex]\$200,000[/tex] term life insurance policy. She is 34 years old. Using the premium table, what is her annual premium for a 10-year policy?

\begin{tabular}{|c|c|c|c|c|}
\hline \multirow[t]{2}{*}{Age} & \multicolumn{4}{|c|}{Annual Life Insurance Premium (per [tex]\$1000[/tex] of face value)} \\
\hline & \multicolumn{2}{|c|}{5-Year Term} & \multicolumn{2}{|c|}{10-Year Term} \\
\hline & Male & Female & Male & Female \\
\hline 30 & 3.98 & 3.66 & 6.06 & 5.72 \\
\hline 31 & 4.08 & 3.76 & 6.13 & 5.79 \\
\hline 32 & 4.19 & 3.87 & 6.30 & 5.85 \\
\hline 33 & 4.30 & 3.98 & 6.38 & 5.93 \\
\hline 34 & 4.42 & 4.10 & 6.45 & 6.01 \\
\hline 35 & 4.54 & 4.22 & 6.53 & 6.09 \\
\hline
\end{tabular}

a. [tex]\$1,290[/tex]
b. [tex]\$1,202[/tex]
c. [tex]\[tex]$6,010[/tex]
d. [tex]\$[/tex]820[/tex]



Answer :

GinnyAnswer
Jade wants to buy a [tex]$200,000$[/tex] term life insurance policy. She is 34 years old. According to the premium table, we need to determine the annual premium for a 10-year policy.

1. First, locate the appropriate values in the table. We see that for a 34-year-old female purchasing a 10-year term policy, the annual premium rate per [tex]$1000 of face value is $[/tex]6.01.

2. Jade's desired coverage is for [tex]$200,000. We need to calculate the premium for this amount. To do this, we use the given rate per $[/tex]1000 of insurance.

3. Split the [tex]$200,000 into units of $[/tex]1000:
[tex]\[ 200,000 \div 1,000 = 200 \][/tex]
This means Jade is buying 200 units of [tex]$1000 each. 4. Multiply the number of units (200) by the premium rate per unit ($[/tex]6.01):
[tex]\[ 200 \times 6.01 = 1202.00 \][/tex]

Therefore, the annual premium for Jade’s [tex]$200,000 term life insurance policy is $[/tex]1,202.

So, the correct answer is:
b. $1,202

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