Chapter 4

Chapter 4 - Chapter 4 1 You are x given the following...

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Chapter 4 1. You are given the following mortality table: x l x q x p x 90 1000 0.10 0.90 91 900 0.20 0.80 92 720 0.40 0.60 93 432 0.50 0.50 94 216 1.00 0.00 95 0 Assume that deaths are uniformly distributed between integral ages and that the equivalence principle applies. Calculate at i = 4% : a. The level annual premium for a whole life of 5000 to (90). The death benefit is payable at the end of the year of death and the premium is payable for life. b. The variance of the loss at issue random variable for the insurance in a. c. The monthly premium for a whole life of 5000 to (90). The death benefit is payable at the moment of death and the premium is payable for two years during the insured’s lifetime. 2. Problem 6.1 in the book. 3. A whole life policy on (60) pays a death benefit of 40,000 at the moment of death. Premiums are paid annually for as long as the
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insured lives. You are given: 1 a. Mortality follows the Illustrative Life Table. 2
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This note was uploaded on 02/19/2012 for the course STAT 490 taught by Professor Na during the Fall '11 term at Purdue.

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Chapter 4 - Chapter 4 1 You are x given the following...

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