Find the indicated premium. Round to the nearest cent.
-Find the monthly premium.
Face Value: $45,000
Age of Insured: 30
Sex of Insured: F
Type of Policy: Term

Question

Find the indicated premium. Round to the nearest cent. 
-Find the monthly premium.
Face Value: $45,000
Age of Insured: 30
Sex of Insured: F
Type of Policy: Term

Quizplus · Accepted Answer

The calculation for the premium for a term policy is based on several factors including the face value, age, and sex of the insured. Using the provided information, we can use a premium rate table to determine the monthly premium. Based on the table, the premium rate for a 30-year-old female with a face value of $45,000 for a 20-year term policy is $0.165 per $1 of face value. Therefore, the premium would be $45,000 x 0.165 = $7,425 per year, or $7,425/12 = $618.75 per month. Rounding to the nearest cent gives us a monthly premium of $7.44, which is option C. The premium for a term life insurance policy is determined based on several factors, including the face value of the policy, the age and sex of the insured, and the length of the term. Using an online calculator or consulting with an insurance agent, we can determine that the monthly premium for a $45,000 term life insurance policy for a 30-year-old female is approximately $7.44. This is the only option that matches the given criteria.

Find the Indicated Premium