John has just turned 22 and is graduating from college. He is thinking about purchasing $200,000 in term life insurance for the coming two years. Calculate the fair premium without expense or profit loadings for John. Assume that the probability of John dying in age 22 to 23, and 23 to 24 are 0.00189 and 0.00200. The claim occurs at the end of the year. The annualized interest rate is 6%. Round to two decimal places when calculating your answer.

John also is considering the purchase of a $200,000 whole life policy. His agent tells him that the cost will be $2,000. Explain why the same level of coverage is so much more expensive.