Grace's employer is now offering group-term life insurance. The company will provide each employee with $120,000 of group-term life insurance. It costs Grace's employer $680 to provide this amount of insurance to Grace each year. Assuming that Grace is 37 years old, use the table to determine the monthly premium that Grace must include in income as a result of receiving the group-term life benefit.

EXHIBIT 12-08 Uniform Premiums for $1,000 of Group-Term Life Insurance Protection

5-Year Age Bracket Cost per $1,000 of Protection for One Month Under 25 $0.05 25 to 29 0.06 30 to 34 0.08 35 to 39 0.09 40 to 44 0.10 45 to 49 0.15 50 to 54 0.23 55 to 59 0.43 60 to 64 0.66 65 to 69 1.27 70 and above 2.06

Multiple Choice

• $6.30.
• $13.90.
• $0.
• $50.77.