Michael has a life insurance premium of $400 a year on a term life insurance policy for a 40-year term with $150,000 of coverage. How does the total cost of the premiums over 40 years compare to the coverage?

Select the best answer from the choices provided.
The premiums are $134,000 more than the coverage.
The coverage is $134,000 more than the premiums.
The premiums are $171,000 more than the coverage.
The coverage is $171,000 more than the premiums.

Question

Michael has a life insurance premium of $400 a year on a term life insurance policy for a 40-year term with $150,000 of coverage. How does the total cost of the premiums over 40 years compare to the coverage?


Select the best answer from the choices provided.
The premiums are $134,000 more than the coverage.
The coverage is $134,000 more than the premiums.
The premiums are $171,000 more than the coverage.
The coverage is $171,000 more than the premiums.