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QuizMultiple Choice

Life Insurance

Question 1 • LVA - Mathematical Modeling - Spring

Determine the permanent life insurance amount per thousand given that the policy belongs to a healthy 25-year-old male with an annual premium of $4,072.2 and a face value of $110,000 on a 20-Year Endowment insurance policy.

Answer
A
$38.96
B
$38.23
C
$37.67
D
$37.02

Explanation

A $110,000 face value represents 110 units of $1,000. Divide the annual premium by 110: $4,072.20 ÷ 110 = $37.02 per $1,000 of coverage. Therefore, the correct choice is $37.02.

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