Insured A, age 27, purchased a $35,000, 20-payment life policy with premiums payable annually. Insured B, also age 27, purchased a $35,000 straight-life policy with premiums payable semiannually. Both A and B lived 40 more years. How much more in premiums did insured B pay the insurance company during his lifetime than insured A paid during hers? Refer to Table 12-1. (1 year = 12 months.)

Question

Insured A, age 27, purchased a $35,000, 20-payment life policy with premiums payable annually. Insured B, also age 27, purchased a $35,000 straight-life policy with premiums payable semiannually. Both A and B lived 40 more years. How much more in premiums did insured B pay the insurance company during his lifetime than insured A paid during hers? Refer to Table 12-1. (1 year = 12 months.)​

Gurpreet Singh · Accepted Answer

Final Answer : $4,389

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