{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

AM3.678

# AM3.678 - Endowment Insurance(section 3.6 An n-year...

This preview shows pages 1–7. Sign up to view the full content.

Endowment Insurance (section 3.6) An n-year endowment insurance policy is issued to ( x ) and provides a payment of \$1 if: ( x ) dies within n -years (i.e. dies before reaching age x+n ) OR ( x ) survives the n -year period (i.e. survives to age x+n ) Endowment= Term + Pure Insurance Insurance Endowment | : n x A = 1 | : n x A + x n E

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Note 1. If the benefit is \$ R , then NSP = R | : n x A = R [ 1 | : n x A + x n E ] 2. If the death benefit is \$ R and the pure endowment benefit is \$ R * , then NSP = R 1 | : n x A + R * x n E
Net Annual Premiums 1. Payable For Life of Policy | : n x P = NAP for an n -year endowment policy, with premiums payable for the life of the policy

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
2. Limited Pay Plan | : n x m P = NAP for an n -year endowment policy, with premiums payable for a maximum of m -years ( m < n )
Example 3.6.1 (related to 3.5.1(b)) (40) purchases a \$100,000 20-year endowment policy. What is the (a) net single premium? (b)net annual premium payable for the life of the policy? (c) net annual premium payable for a maximum of 10 years? Solution to 3.6.1

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Example 3.6.2 (28) buys a 37-year endowment policy with a death benefit of \$100,000 and a survivor benefit of \$15,000 if (28) survives to age 65.
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 21

AM3.678 - Endowment Insurance(section 3.6 An n-year...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online