Eva is 29 years old and has 2 children, ages 3 and 5. she makes $48,500 a year. eva decides to buy a $400,000 10-year term policy and then renew the policy for another ten years afterwards. to renew the policy the insurance company charges an extra 40% to her premium rate. given the options below, assess whether eva made a wise decision. annual life insurance premium (per 1,000 dollars of face value) for age 29. a 20-year term for male is 7 dollars and 84 cents, and for female is 6 dollars and 62 cents. 20-year term: for male is 10 dollars and 40 cents, female is 9 dollars and 4 cents. whole life: male is 20 dollars and 5 cents and female is 18 dollars and 63 cents.
a. eva would have been better off selecting the 20-year term policy.
b. even with the extra charge for renewal, eva’s plan is the least expensive.
c. given that eva plans to renew, she should have selected the whole life policy.
d. eva ends up paying the same amount for each p