Answer :
Answer:
The question is missing the sample life insurance premium illustration as found in the attached.
The correct option based on the below calculation is A,$33.75
Step-by-step explanation:
A female non-smoker who wanted a coverage of $25,000 as found in attached the sample life insurance premium illustration would pay $6.75 in premium.
Based on the above, a female non-smoker who wanted a coverage of $125,000 has it premium computed thus:
premium=$125,000/$25,000*$6.75
premium=5*$6.75=$33.75
The correct option is A,$33.75
Answer:
The insurance premium for a 42-year old nonsmoking female who wants $125,000 in coverage is $33.75. The right answer is a.
Step-by-step explanation:
In order to calculate the insurance premium for a 42-year old nonsmoking female who wants $125,000 in coverage we would have to use the following formula:
insurance premium= (coverage amount/monthly premiun amount)*$6.75
Therefore, insurance premium= ($125,000/$25,000)×$6.75
insurance premium= $33.75
The insurance premium for a 42-year old nonsmoking female who wants $125,000 in coverage is $33.75