Lee purchases $110,000 of insurance for $1,100 per year, stating her age as twenty-five rather than her correct age of twenty-six. How much will Malvern Life pay if Lee dies?

Malvern Life provides ordinary life insurance at the following premiums:


Age

Premium

25

$10 per $1,000 of insurance

26

$11 per $1,000 of insurance



Lee purchases $110,000 of insurance for $1,100 per year, stating her age as twenty-five rather than her correct age of twenty-six. How much will Malvern Life pay if Lee dies?




A. $0


B. $89,000


C. $100,000


D. $110,000



Answer: C. $100,000

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