11
QuizMultiple Choice

Life Insurance

Question 11 • LVA - Mathematical Modeling - Spring

How much will you have contributed to a Whole Life insurance policy that has a face value of $60,000 over a 40-year period, given that the permanent insurance amount for a healthy 30-year-old male is $18.54 per thousand.

Answer
A
$1,112.4
B
$44,496
C
$60,000
D
$533,952

Explanation

A $60,000 face value is 60 units of $1,000. At $18.54 per $1,000, the yearly contribution is 60 × $18.54 = $1,112.40. Over 40 years, that totals $1,112.40 × 40 = $44,496, which is choice b.

AI-written and checked against the verified answer.

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