1.
A 20year endowment insurance for 50,000 on (70) pays its death benefit at the moment of
death.
Level annual benefit premiums are paid at the beginning of each year.
You are given:
i.
Mortality follows the Illustrative Life table.
ii.
0.06
i
Calculate the reserve at the end of the 7
th
year.
2.
A fully discrete whole life insurance of 100,000 with level annual benefit premiums is sold to
(65).
You are given:
i.
Mortality follows the Illustrative Life table except the mortality rate at age 65 is
tripled.
ii.
0.06
i
Calculate
10
V
.
3.
For a fully discrete 3year endowment insurance of 1000 on (x):
i.
1
0.25
x
x
q
q
ii.
0.90
v
Calculate
1
:3
1000(
)
x
V
.
4.
You are given the following for a special fully discrete whole life issued to (55):
iii.
Mortality follows the Illustrative Life Table.
iv.
0.06
i
v.
The death benefit is a level 1000 for all years.
vi.
The annual premiums are reduced by 50% at age 65.
Calculate the reserve at the end of year 5.
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5.
You are given:
vii.
1000
(
)
25
x
P A
viii.
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 Fall '11
 NA
 Actuarial Science, Endowment policy, Illustrative Life Table

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