Morgan, aged 40, purchases a whole life policy paying 50,000 in case of death within the next
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Morgan, aged 40, purchases a whole life policy paying 50,000 in case of death within the next 10 years and 100,000 thereafter.
Assume M40 = 740, M50 = 580 and N^q = 59,000.
(a) Find the net annual premium for this policy.
(b) Find the terminal reserve at age 45, assuming M45 = 675, A^45 = 42,000 and D45 = 1700.
(c) Find the terminal reserve at age 55, assuming M55 = 475, Ds5 = 1150and7V55 = 27,000.
(d) In part (c), find the portion of Morgan's future benefits that are funded by his future premiums.
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Theory Of Interest And Life Contingencies With Pension Applications A Problem Solving Approach
ISBN: 978-1566983334
3rd Edition
Authors: Asa Michael M. Parmenter, Ph.d.
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