Section27 - , 000 at the instant of the second death of ( x...

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Example : A temporary discrete life annuity- due of 1 is payable to ( x ) as long as ( x ) lives jointly with ( y ) , and for 10 years after the death of ( y ) , provided ( x ) is still alive. In no event will payments be made after 20 years. You are given: i) ¨ a x = 15 ii) 10 | ¨ a x = 8 iii) ¨ a y = 16 iv) ¨ a y : 10 | = 7 v) ¨ a y : y : 10 | = 8 vi) ( y ) is 10 years older than ( x ) vii) ( x ) and ( y ) are independent lives. Calculate the actuarial present value of this annuity. 1
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Example : A fully continuous last survivor whole life insurance policy pays $10
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Unformatted text preview: , 000 at the instant of the second death of ( x ) and ( y ) . Benet pre-miums are payable as long as both survive, with the premiums halving after the rst death. Both lives are subject to a constant force of mortality, with ( x ) subject to a constant force of . 04 and ( y ) subject to a constant force of . 06 . If = 0 . 02 , nd the initial rate of annual pre-mium. 2...
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This note was uploaded on 09/27/2009 for the course ACT ACT348 taught by Professor Badescu during the Fall '08 term at University of Toronto- Toronto.

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Section27 - , 000 at the instant of the second death of ( x...

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