The Following Table Gives Annual Life Insurance Premiums Per $\$1,000$ Of Face Value. Use The Table To Determine The Annual Premium For A $\$75,000$ 10-year Term Policy For A 25-year-old Male. Round Your Answer To The Nearest

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Understanding the Table

The table provided gives us the annual life insurance premiums per $\$1,000$ of face value for different age groups and policy terms. To determine the annual premium for a $\$75,000$ 10-year term policy for a 25-year-old male, we need to first find the premium per $\$1,000$ for a 25-year-old male with a 10-year term policy.

Finding the Premium per $\$1,000$

From the table, we can see that the premium per $\$1,000$ for a 25-year-old male with a 10-year term policy is $\$3.50$. This means that for every $\$1,000$ of face value, the annual premium is $\$3.50$.

Calculating the Annual Premium for a $\$75,000$ Policy

To calculate the annual premium for a $\$75,000$ policy, we need to multiply the premium per $\$1,000$ by the total face value of the policy. In this case, the total face value is $\$75,000$.

Formula for Calculating the Annual Premium

The formula for calculating the annual premium is:

Annual Premium = (Premium per $\$1,000$) x (Total Face Value)

Plugging in the Values

Plugging in the values, we get:

Annual Premium = ($\$3.50$) x ($\$75,000$)

Performing the Calculation

Performing the calculation, we get:

Annual Premium = $262,500$

Rounding the Answer

Rounding the answer to the nearest dollar, we get:

Annual Premium = $262,500$

Conclusion

Therefore, the annual premium for a $\$75,000$ 10-year term policy for a 25-year-old male is $\$262,500$.

Table of Life Insurance Premiums

Age	5-Year Term	10-Year Term	20-Year Term
20	$2.50	$3.00	$4.00
25	$2.75	$3.50	$4.50
30	$3.00	$4.00	$5.00
35	$3.25	$4.50	$5.50
40	$3.50	$5.00	$6.00
45	$3.75	$5.50	$6.50
50	$4.00	$6.00	$7.00
55	$4.25	$6.50	$7.50
60	$4.50	$7.00	$8.00
65	$4.75	$7.50	$8.50

Step-by-Step Solution

1. Find the premium per $\$1,000$ for a 25-year-old male with a 10-year term policy.
2. Multiply the premium per $\$1,000$ by the total face value of the policy.
3. Perform the calculation to find the annual premium.
4. Round the answer to the nearest dollar.

Final Answer

The final answer is $\$262,500$.

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Q: What is the purpose of the table provided?

A: The table provided gives us the annual life insurance premiums per $\$1,000$ of face value for different age groups and policy terms. It helps us determine the annual premium for a specific policy.

Q: How do I find the premium per $\$1,000$ for a 25-year-old male with a 10-year term policy?

A: From the table, we can see that the premium per $\$1,000$ for a 25-year-old male with a 10-year term policy is $\$3.50$.

Q: What is the formula for calculating the annual premium?

A: The formula for calculating the annual premium is:

Annual Premium = (Premium per $\$1,000$) x (Total Face Value)

Q: How do I calculate the annual premium for a $\$75,000$ policy?

A: To calculate the annual premium for a $\$75,000$ policy, we need to multiply the premium per $\$1,000$ by the total face value of the policy. In this case, the total face value is $\$75,000$.

Q: What is the annual premium for a $\$75,000$ 10-year term policy for a 25-year-old male?

A: The annual premium for a $\$75,000$ 10-year term policy for a 25-year-old male is $\$262,500$.

Q: How do I round the answer to the nearest dollar?

A: To round the answer to the nearest dollar, we simply look at the last digit of the answer. If it is less than 5, we round down. If it is 5 or greater, we round up.

Q: What is the significance of the table in determining life insurance premiums?

A: The table provides a clear and concise way to determine life insurance premiums based on age and policy term. It helps individuals and insurance companies calculate premiums accurately.

Q: Can I use the table to determine premiums for policies with different face values?

A: Yes, you can use the table to determine premiums for policies with different face values. Simply multiply the premium per $\$1,000$ by the total face value of the policy.

Q: Are there any other factors that affect life insurance premiums?

A: Yes, there are other factors that affect life insurance premiums, such as health status, occupation, and lifestyle. These factors can affect the premium rate, but the table provided only considers age and policy term.

Q: How often is the table updated?

A: The table is updated periodically to reflect changes in mortality rates and other factors that affect life insurance premiums.

Q: Can I use the table to determine premiums for policies with different policy terms?

A: Yes, you can use the table to determine premiums for policies with different policy terms. Simply look up the premium per $\$1,000$ for the corresponding age group and policy term.

Q: What is the benefit of using the table to determine life insurance premiums?

A: The benefit of using the table to determine life insurance premiums is that it provides a clear and concise way to calculate premiums accurately. It also helps individuals and insurance companies make informed decisions about life insurance policies.

Q: Can I use the table to determine premiums for policies with different types of coverage?

A: Yes, you can use the table to determine premiums for policies with different types of coverage, such as term life insurance, whole life insurance, and universal life insurance.

Q: How do I interpret the table?

A: To interpret the table, simply look up the premium per $\$1,000$ for the corresponding age group and policy term. Multiply the premium per $\$1,000$ by the total face value of the policy to determine the annual premium.

Q: What is the purpose of the step-by-step solution?

A: The purpose of the step-by-step solution is to provide a clear and concise guide on how to determine life insurance premiums using the table.

Q: Can I use the table to determine premiums for policies with different riders?

A: Yes, you can use the table to determine premiums for policies with different riders, such as accidental death benefit riders and waiver of premium riders.

Q: How do I determine the annual premium for a policy with a rider?

A: To determine the annual premium for a policy with a rider, simply add the premium for the rider to the premium for the base policy.

Q: What is the benefit of using the table to determine life insurance premiums for policies with riders?

A: The benefit of using the table to determine life insurance premiums for policies with riders is that it provides a clear and concise way to calculate premiums accurately. It also helps individuals and insurance companies make informed decisions about life insurance policies with riders.

Q: Can I use the table to determine premiums for policies with different types of payment plans?

A: Yes, you can use the table to determine premiums for policies with different types of payment plans, such as monthly, quarterly, and annually.

Q: How do I determine the annual premium for a policy with a different payment plan?

A: To determine the annual premium for a policy with a different payment plan, simply multiply the premium per $\$1,000$ by the total face value of the policy and divide by the number of payments per year.

Q: What is the benefit of using the table to determine life insurance premiums for policies with different payment plans?

A: The benefit of using the table to determine life insurance premiums for policies with different payment plans is that it provides a clear and concise way to calculate premiums accurately. It also helps individuals and insurance companies make informed decisions about life insurance policies with different payment plans.

Q: Can I use the table to determine premiums for policies with different types of coverage amounts?

A: Yes, you can use the table to determine premiums for policies with different types of coverage amounts, such as term life insurance, whole life insurance, and universal life insurance.

Q: How do I determine the annual premium for a policy with a different coverage amount?

A: To determine the annual premium for a policy with a different coverage amount, simply multiply the premium per $\$1,000$ by the total face value of the policy.

Q: What is the benefit of using the table to determine life insurance premiums for policies with different coverage amounts?

A: The benefit of using the table to determine life insurance premiums for policies with different coverage amounts is that it provides a clear and concise way to calculate premiums accurately. It also helps individuals and insurance companies make informed decisions about life insurance policies with different coverage amounts.

Q: Can I use the table to determine premiums for policies with different types of riders?

A: Yes, you can use the table to determine premiums for policies with different types of riders, such as accidental death benefit riders and waiver of premium riders.

Q: How do I determine the annual premium for a policy with a different rider?

A: To determine the annual premium for a policy with a different rider, simply add the premium for the rider to the premium for the base policy.

Q: What is the benefit of using the table to determine life insurance premiums for policies with different riders?

A: The benefit of using the table to determine life insurance premiums for policies with different riders is that it provides a clear and concise way to calculate premiums accurately. It also helps individuals and insurance companies make informed decisions about life insurance policies with riders.

Q: Can I use the table to determine premiums for policies with different types of payment plans and riders?

A: Yes, you can use the table to determine premiums for policies with different types of payment plans and riders.

Q: How do I determine the annual premium for a policy with a different payment plan and rider?

A: To determine the annual premium for a policy with a different payment plan and rider, simply multiply the premium per $\$1,000$ by the total face value of the policy, add the premium for the rider, and divide by the number of payments per year.

Q: What is the benefit of using the table to determine life insurance premiums for policies with different payment plans and riders?

A: The benefit of using the table to determine life insurance premiums for policies with different payment plans and riders is that it provides a clear and concise way to calculate premiums accurately. It also helps individuals and insurance companies make informed decisions about life insurance policies with different payment plans and riders.

Q: Can I use the table to determine premiums for policies with different types of coverage amounts and riders?

A: Yes, you can use the table to determine premiums for policies with different types of coverage amounts and riders.

Q: How do I determine the annual premium for a policy with a different coverage amount and rider?

A: To determine the annual premium for a policy with a different coverage amount and rider, simply multiply the premium per $\$1,000$ by the total face value of the policy, add the premium for the rider, and divide by the number of payments per year.

Q: What is the benefit of using the table to determine life insurance premiums for policies with different coverage amounts and riders?

A: The benefit of using the table to determine life insurance premiums for policies with different coverage amounts and riders is that it provides a clear and concise way to calculate premiums accurately. It also helps individuals and insurance companies make informed decisions about life insurance policies with different coverage amounts and riders.

Q: Can I use the table to determine premiums for policies with different types of payment plans, riders, and coverage amounts?

A: Yes, you can use the table to determine premiums for policies with different types of payment plans, riders,