The difference in total premium costs over 20 years at the two age levels is $12875.
Face value is a term used to describe the nominal value of a security, as stated by its issuer.
Let us consider the entire scenario for a 40-year old male.
Annual life insurance premium per 1000 of face value = $22.60
So, the annual life insurance premium for a $125,000 whole life insurance policy = 125000/1000 * 22.60 = $2825.
For 20 years the premium will be = 2825*20 = $56500
Let us consider the entire scenario for a 45-year old male.
Annual life insurance premium per 1000 of face value = $27.75
So, the annual life insurance premium for a $125,000 whole life insurance policy = 125000/1000 * 27.75 = $3468.75
For 20 years the premium will be = 3468.75*20 = $69375
The difference in total premium costs over 20 years = 69375-56500 The difference in total premium costs over 20 years = $12875
Therefore, The difference in total premium costs over 20 years at the two age levels is $12875.
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