Morgan, aged 40, purchases a whole life policy paying 50,000 in case of death within the next

Question:

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.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Question Posted: