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QuizMultiple Choice

Life Insurance

Question 1 • LVA - Mathematical Modeling - Spring

Determine the term life insurance amount per thousand on a 22-year-old female for a 5-year policy given that the face value of the policy is $600,000 and the annual premium is $1332.

Answer
A
$2.07
B
$2.30
C
$2.15
D
$2.22

Explanation

Divide the annual premium by the number of thousands of dollars of coverage: $600,000 contains 600 units of $1,000. Then $1,332 ÷ 600 = $2.22 per thousand. The correct choice is $2.22.

AI-written and checked against the verified answer.

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