A whole life insurance policy is issued to [45]. The sum insured is $200,000 payable immediately...

 

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A whole life insurance policy is issued to [45]. The sum insured is $200,000 payable immediately on death. Premiums of amount $P are payable annually in advance, 'ceasing at age 65 or on earlier of death' (20 Pay Whole Life Policy). (a) What is the future loss random variable for this policy? (b) Find the premium P. Assume SSSM applies and the UDD fractional age assumption. A whole life insurance policy is issued to [45]. The sum insured is $200,000 payable immediately on death. Premiums of amount $P are payable annually in advance, 'ceasing at age 65 or on earlier of death' (20 Pay Whole Life Policy). (a) What is the future loss random variable for this policy? (b) Find the premium P. Assume SSSM applies and the UDD fractional age assumption.

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aThe future loss random variable for this policy is the death benefit The death benefit is the amoun... View the full answer