(10 points) Assume we have a fully discrete whole life insurance purchased by a man aged 45. The insurance provides a benefit of $100 000 for death in the first 20 years, and $200 000 thereafter, payable at the end of the year of death. Level premiums "P" are payable annually during the first 20 years and level premiums of "2P" are paid thereafter. The premium is determined by the equivalence principle. We are also given the following information: i. A15 = 0.4 ii. All.20 = 0.06 iii. A45:20 = 0.6 iv. i = 0.05 Question: Calculate 20 V. Hints: Premium..4. -A . Benefits: 2A, - Alin gives a benefit of 1 during the first n years and a benefit of 2 after n years. Premium: vg = , go (5.25) Policy Value =20: A. = A1:72 + A2: Az+n (10 points) Assume we have a fully discrete whole life insurance purchased by a man aged 45. The insurance provides a benefit of $100 000 for death in the first 20 years, and $200 000 thereafter, payable at the end of the year of death. Level premiums "P" are payable annually during the first 20 years and level premiums of "2P" are paid thereafter. The premium is determined by the equivalence principle. We are also given the following information: i. A15 = 0.4 ii. All.20 = 0.06 iii. A45:20 = 0.6 iv. i = 0.05 Question: Calculate 20 V. Hints: Premium..4. -A . Benefits: 2A, - Alin gives a benefit of 1 during the first n years and a benefit of 2 after n years. Premium: vg = , go (5.25) Policy Value =20: A. = A1:72 + A2: Az+n