EXHIBIT 12-8 Uniform Premiums for $1,000 of Group-Term Life Insurance Protection Table Summary: Chart shows cost per $1,000 of life insurance protection for one month per 5-year age bracket. 5-Year Age Bracket Cost per $1,000 of Protection for One Month Under 25 SOOS 25 to 29 06 30 to 34 08 35 to 39 .09 40 to 44 .10 45 to 49 .15 50 to 54 23 55 to 59 43 60 to 64 .66 65 to 69 1.27 70 and above 2.06 Source: Reg 91.70-31d (2) In the current year, Jillage 35, received a job offer with two alternative compensation packages to choose from. The first package offers her a $91.800 annual salary with no qualified fringe benefits Jemployer provided health insurance, and requires her to pay $4,400 a year for parking and to purchase life insurance at a cost of $1.900 The second package offers an $80.900 annual salary, employer-provided health insurance, annual free parking (worth $410 per month) $200,000 of life insurance (purchasing on her own would have been $1,900 annually), and free flight benefits (she estimates that it will save her $5 900 per year). If Jill chooses the first package, she will purchase the health and life insurance benefits herself at a cost of $1900 annually after taxes and spend another $5,900 in flights while traveling. Assume her marginal tax rate is 32 percent (Use Exhibit 12-8) Required: at. Which compensation package should she choose? a2. How much would she benefit in after-tax dollars by choosing this compensation package instead of the alternative package? b1. Assume the first package offers a $110,000 salary instead of a $91,800 salary and the other benefits and costs are the same. Which compensation package should she choose? b2. How much would she benefit in after-tax dollars by choosing this package? Root Reg az Req bi Reqb2 Which compensation package should she choose? Package 1 offers her $91,800 annual salary with no qualified fringe benefits. Package 2 offers 560.900 annual salary plus qualified fringe benefits like health and life insurance benefits, parking. Tight tickets Regal Reg a2 Req bi Reg 2 How much would she benefit in after-tax dollars by choosing this compensation package instead of the alternative package? (Round your Intermediate computations to the nearest whole dollar amount.) Aher-tax benefit 1 R Heg 2 Assume the first package offers a $110.000 salary instead of a 101.000 salary, and the other benefits and costs are the same. Wich compensation package should she choose Package offers her 5110,000 annual story with no qualified tinge benes Page 2 offers $80 900 annual salary plus qualified fringe bones se han ander insurance benes parking, night ickets Reg a Reg 2 Reg bi 39b2 How much would she benefit in after-tax dollars by choosing this package? (Round your intermediate computations to the nearest whole dollar amount.) After-tax benefit
