Question

Drake bought a $110,000 life insurance policy at $12.95 for a 20 year term.
What will he pay over 20 years for the premium?

Answer 1

Drake will pay $28,490 over 20 years for the premium.

Data and Calculations:

Life insurance policy = $110,000

Insurance term = 20 years

Premium rate = $12.95 per $1,000

Total premium per year = $1,424.50 ($12.95 x $110,000/$1,000)

Total premium for 20 years = $28,490 ($12.95 x $110,000/$1,000 x 20)

Thus, Drake will pay a total premium of $28,490 for 20 years.

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