3. (a) Distinguish between term insurance and whole life insurance. How does the insurance industry deal with the unpopular nature of the term insurance. (b) You are currently 40 years old. It is found that your mortality follows De Moivre's Law with w =85, You purchase a whole life insurance policy thatpays a benefit of 1,000,000GHC at the moment of death. Calculate the actuarial present value of your death benefits. Assume an annual effective interest rate of 10percent . (c) Consider a 20-year term insurance for a life aged 45, with payment due upon death. Assume that this person belongs to a population, whose lifetime has a probability distribution tPo = 1 - 100 t E (0; 100] Assume that the force of interest is 8 = 0.05 Calculate the actuarial present value of this policy. 3. (a) Distinguish between term insurance and whole life insurance. How does the insurance industry deal with the unpopular nature of the term insurance. (b) You are currently 40 years old. It is found that your mortality follows De Moivre's Law with w =85, You purchase a whole life insurance policy thatpays a benefit of 1,000,000GHC at the moment of death. Calculate the actuarial present value of your death benefits. Assume an annual effective interest rate of 10percent . (c) Consider a 20-year term insurance for a life aged 45, with payment due upon death. Assume that this person belongs to a population, whose lifetime has a probability distribution tPo = 1 - 100 t E (0; 100] Assume that the force of interest is 8 = 0.05 Calculate the actuarial present value of this policy