Chapter 8 Financial Planning Exercise 4 EXHIBIT 8.2 Representative Annual Renewable Term Life Insurance Premiums: $100,000 Policy, Preferred Nonsmoker Rates When you buy term life insurance, you're buying a product that provides life insurance coverage and nothing more. This table shows representative rates for several age categories and selected policy years; actual premiums increase every year. As you can see females pay less than males for coverage, and premiums increase sharply with age. AGE 25 Male Female $95 $49 $97 $63 $107 $88 $145 $117 $177 $151 AGE 40 Male Female $145 $117 $177 $151 $237 $194 $299 $236 $429 $366 Policy Year 10 15 Representative Level Premium Term Life Rates: $100,000 Preferred Nonsmoker Policy EXHIBIT 8.3 s table shows representative annual premiums for $100,000 of level premium term life insurance. Although level premium costs less than annual renewable term for the same period, you must requalify at the end of each term to retain the low premium 10 YEAR Male/Female $106/$102 $108/$102 $122/$115 $203/$171 $403/$300 15 YEAR Male/Female $116/$110 $117/$112 $135/$129 $250/$199 $539/$373 Age 35 ntative Whole Life Insu e Annual Premiums: $100,000