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.
EXHIBIT 12-08 Uniform Premiums for $1,000 of Group-Term Life Insurance Protection

Question

Quizplus · Accepted Answer

$200,000 policy less $50,000 exemption times 10 cents per month per thousand of coverage.

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