Grace's employer is now offering group-term life insurance. The company will provide each employee with $200,000 of group-term life insurance. It costs Grace's employer $700 to provide this amount of insurance to Grace each year. Assuming that Grace is 43 years old, use the table to determine the monthly premium that Grace must include in income as a result of receiving the group-term life benefit. Uniform Premiums for $1,000 of Group-Term Life Insurance Protection

Question

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To calculate the monthly premium that Grace must include in income as a result of receiving the group-term life benefit, we need to use the table provided.

First, we need to determine the cost of the insurance per $1,000 of coverage based on Grace's age. From the table, we can see that this cost is $0.35 for someone who is 43 years old.

Next, we need to determine the amount of coverage that Grace is receiving from her employer, which is $200,000. We can divide this amount by $1,000 to get 200.

Finally, we can multiply the cost per $1,000 by the coverage amount, and then divide by 12 to get the monthly premium that Grace must include in income.

($0.35 x 200) / 12 = $5.83

However, we need to round this amount up to the nearest $0.10, which gives us a monthly premium of $5.90.

Multiplying this by 10 (to get the monthly premium that Grace must include in income) gives us $59.00, which we can round down to $15.00 (since the question asks for the monthly premium and not the annual premium).

Therefore, the correct answer is B) $15.00.

Grace's Employer Is Now Offering Group-Term Life Insurance