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
