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

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Unformatted text preview: 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 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 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?...
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This note was uploaded on 04/14/2010 for the course ACSCI 2053 taught by Professor Kopp during the Spring '09 term at UWO.

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

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