a solve. Insurance Premiums . The mortality rate for nonsmokers is much lower than it is for those who do smoke. With all other factors being equal, the nonsmoker can expect to pay a lower insurance premium. The equation y = 2.06 x + 10.08 can be used to estimate the monthly premium for a $250,000 term life insurance policy for a female nonsmoker age 40 or older, where x is the issue age-that is x = 0 , corresponds to issue age 40, x = 3 corresponds to issue age 43, and so on. Data: American General Life Insurance Company a. Estimate the monthly insurance premium for a female nonsmoker who is 50 years old. b. At what issue age would the monthly premium be approximately $52?
a solve. Insurance Premiums . The mortality rate for nonsmokers is much lower than it is for those who do smoke. With all other factors being equal, the nonsmoker can expect to pay a lower insurance premium. The equation y = 2.06 x + 10.08 can be used to estimate the monthly premium for a $250,000 term life insurance policy for a female nonsmoker age 40 or older, where x is the issue age-that is x = 0 , corresponds to issue age 40, x = 3 corresponds to issue age 43, and so on. Data: American General Life Insurance Company a. Estimate the monthly insurance premium for a female nonsmoker who is 50 years old. b. At what issue age would the monthly premium be approximately $52?
Solution Summary: The author calculates the monthly insurance premium paid by a female non-smoker who is 50 years old and has 250,000 term life insurance policy.
Insurance Premiums. The mortality rate for nonsmokers is much lower than it is for those who do smoke. With all other factors being equal, the nonsmoker can expect to pay a lower insurance premium. The equation
y
=
2.06
x
+
10.08
can be used to estimate the monthly premium for a $250,000 term life insurance policy for a female nonsmoker age 40 or older, where x is the issue age-that is
x
=
0
, corresponds to issue age 40,
x
=
3
corresponds to issue age 43, and so on.
Data: American General Life Insurance Company
a. Estimate the monthly insurance premium for a female nonsmoker who is 50 years old.
b. At what issue age would the monthly premium be approximately $52?
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