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Using Table 19-1 and Table 19-2 find the following premiums for a 10-year term life insurance policy with a face value of $30,000 for a 28-year-old male. A. Annual premium B. Semiannual premium C. Quarterly premium D. Monthly premium

Using Table 19-1 and Table 19-2 find the following premiums for a 10-year term life insurance policy with a face value of $30,000 for a 28-year-old male. A. Annual premium B. Semiannual premium C. Quarterly premium D. Monthly premium

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Using Table 19-1 and Table 19-2 find the following premiums for a 10-year term life insurance policy with a face value of $30,000 for a 28-year-old male.

A. Annual premium

B. Semiannual premium

C. Quarterly premium

D. Monthly premium                                                                                                                                                               Life Insurance—Premium Factors
Premium Paid    Percent of Annual Premium
Semiannually          52%
Quarterly                  26%
Monthly                  9%

This table provides a comparison of insurance premium rates by age, gender, and type of policy. It distinguishes between Term Insurance and Permanent Insurance. **Term Insurance:** - *5-Year Term*: Presents premiums for males and females from ages 18 to 60. Starting at $2.32 for 18-year-old males and $1.90 for females, it increases steadily with age up to $24.10 for males and $19.43 for females at age 60. - *10-Year Term*: Similarly structured, with premiums beginning at $5.43 for 18-year-old males and $4.01 for females, escalating to $37.70 for males and $24.82 for females by age 60. **Permanent Insurance:** - *Whole Life*: Rates are shown for both genders, starting at $13.22 for 18-year-old males and $11.17 for females. By age 60, premiums are $53.98 for males and $42.24 for females. - *20-Payment Life*: For males, initial rates begin at $23.14 for age 18, rising to $70.43 by age 60. For females, it starts at $19.21 and grows to $52.55. - *20-Year Endowment*: Starting for 18-year-old males at $23.32, these rates increase substantially to $79.15 by age 60. Female rates initiate at $29.12, reaching $58.08. This detailed breakdown helps understand how insurance costs vary by demographics and coverage duration.
Transcribed Image Text:This table provides a comparison of insurance premium rates by age, gender, and type of policy. It distinguishes between Term Insurance and Permanent Insurance. **Term Insurance:** - *5-Year Term*: Presents premiums for males and females from ages 18 to 60. Starting at $2.32 for 18-year-old males and $1.90 for females, it increases steadily with age up to $24.10 for males and $19.43 for females at age 60. - *10-Year Term*: Similarly structured, with premiums beginning at $5.43 for 18-year-old males and $4.01 for females, escalating to $37.70 for males and $24.82 for females by age 60. **Permanent Insurance:** - *Whole Life*: Rates are shown for both genders, starting at $13.22 for 18-year-old males and $11.17 for females. By age 60, premiums are $53.98 for males and $42.24 for females. - *20-Payment Life*: For males, initial rates begin at $23.14 for age 18, rising to $70.43 by age 60. For females, it starts at $19.21 and grows to $52.55. - *20-Year Endowment*: Starting for 18-year-old males at $23.32, these rates increase substantially to $79.15 by age 60. Female rates initiate at $29.12, reaching $58.08. This detailed breakdown helps understand how insurance costs vary by demographics and coverage duration.
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