Let's determine Henry's annual life insurance premium step-by-step.
Step 1: Identify the relevant data.
Henry is:
- 41 years old (falls in the age bracket of 40-44).
- Male.
- Purchased a 10-year life insurance policy.
- Coverage amount is [tex]$100,000.
From the provided table, the annual premium per $[/tex]1000 of coverage for a male aged 40-44 for a 10-year policy is [tex]$5.78.
Step 2: Calculate the coverage in units of $[/tex]1000.
The coverage amount is [tex]$100,000, which can be expressed in units of $[/tex]1000 as:
[tex]\[ \frac{100,000}{1000} = 100 \text{ units} \][/tex]
Step 3: Compute the annual premium.
The annual premium is calculated by multiplying the number of [tex]$1000 units of coverage by the annual premium rate per $[/tex]1000 of coverage. Here, the annual premium rate is [tex]$5.78.
\[ \text{Annual Premium} = 100 \text{ units} \times 5.78 \text{ dollars per unit} \]
Multiplying these values together, we get:
\[ \text{Annual Premium} = 100 \times 5.78 = 578 \text{ dollars} \]
So, Henry's annual life insurance premium is $[/tex]578.
