Life insurance policy questions.

Question

Gomez purchased a life insurance policy.  When he was 25 years old, he chose a $200,000, 10-year term policy at a price of $1.00 per $1.000, which at the age of 35 increased to $1.25 per $1.000.  What is the percent increase in the premium for Gomez to continue his $2000,000, 10-year term plicy

Answer 1

The increase would be 25%.

The increase of 25 cents per thousand is 25% of the original premium of $1.00 per thousand, therefore the premium increase to $1.25 per thousand would be 125% of the original premium which represents a 25% increase at age 35.

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