Unformatted text preview: 3. Let 15 L be the prospective loss function at the end of the 15th policy year, given that (50) is still alive then. Calculate V ar ( 15 L | T (50) > 15). Problem 5 Consider a fully continuous 20-Payment years, whole life insurance on (35). A death beneﬁt of 1000 will be paid at the moment of death. Premiums are paid continuously at an annual rate of 1000 20 ¯ P ( ¯ A 35 ). You are given a constant force of mortality μ = 0 . 015 and the force of interest δ = 0 . 035 . Let t L denote the present value at time t of the future loss after time t , given T (35) > t . 1. Calculate E[ 30 L | T (35) > 30]. 2. Calculate Var[ 30 L | T (35) > 30]. 1...
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- Spring '09
- Universal life insurance, Term life insurance, Whole life insurance, de Moivre