The primary unit for figuring out a life insurance rate is the rate per thousand (cost per $1000 of insurance), which can vary depending on which factors influence it (age, gender, etc). For example, if the rate is $0.2 per $1,000 and an enrollee elects $15,000 in coverage, the monthly premium will be $3.
How is insurance premium rate calculated?
Premium is total cost of the insurance policy, calculated simply as: Premium = Rate x Exposures If Premium is measured in units such as dollars, Exposures in units such as Car Years then the Rate would be measured in dollars per Car Year.