Please Help!

An insurance company sells a policy that pays $50,000 in case of accidental death. According to company figures, the rate of accidental death is 47 per 100,000 population. What annual premium should the company charge for this coverage? Explain how much profit the company will make under your plan, how you determined the amount of profit needed for the company, and how the annual premium was computed.

Question

Please Help! 

An insurance company sells a policy that pays $50,000 in case of accidental death.  According to company figures, the rate of accidental death is 47 per 100,000 population.  What annual premium should the company charge for this coverage?  Explain how much profit the company will make under your plan, how you determined the amount of profit needed for the company, and how the annual premium was computed.

anonymous · Answer

Given that they will pay 235k a year based on the figures, let's say they want to take in 300k, for a profit of 65k.  If they have 100k customers, then they will have to charge $3 a year per person.  This is how I calculated it, but you can do your own calculation on your preferences.