How To Calculate Monthly Life Insurance Premium

Life insurance is expressed as a rate per $1,000 of insurance.  To calculate Life Insurance premium you take the benefit volume per $1,000 of coverage multiplied by the monthly rate.  For example, to calculate the monthly premium based on a 2x annual earnings (assume $40,000) schedule and a rate of $0.12 per $1,000 of coverage per month, the calculation is: Benefit Volume * Rate / $1,000 = Monthly premium $80,000 * 0.12 / $1,000 = $9.60

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