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Posted on Aug 03, 2024

3.5 Use Table 3.1 to calculate the minimum premium an insurance company should charge for a S1 million two-year term life insurance policy issued to

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3.5 Use Table 3.1 to calculate the minimum premium an insurance company should charge for a S1 million two-year term life insurance policy issued to a woman age 50. Assume that the premium is paid at the beginning of each year and that the interest rate is zero.* Table 3.1 Mortality Table of Death Life of Death Life (Years within 1 Year Probability Expectancy within 1 Year Probability Expectancy 76.28 0.00651 0. 0,000291 0.99348 0.99302 0.99273 0,005377 0.000379 0,000221 0.000162 80.49 0.99425 0.97519 0.001467 0.001505 0.001541 0.001573 0.97376 0.97230 0.97080 0.98569 0.98500 0.98426 32 0.000748 0.000794 50.08 38.53 0.002092 0.002240 0.002418 0.002629 0.95908 0.95708 0.95493 0.001287 0.001393 36.700.001517 0.001662 0.97753 0.97627 0.97491 0.97343 42.43 37.61 35.78 29.58 40.54 50 51 0.005038 0.005520 0.006036 0.92472 0.91961 0.91406 0,003182 0,00347 0.003767 0.95829 0.95524 0.95193 0.94834 32.27 31.38 0.86112 0.85147 0.011197 0.012009 0.012867 0.013772 0.006545 0.90927 0.007607 0.008281 0.83042 0.023528 0.025693 0.028041 0.030567 0.73461 0.71732 0.69889 0.67930 0.015728 0.017338 0.019108 0.021041 0.81561 0.80147 0.78616 0.065873 0.073082 0.081070 0.50629 0.47621 0.44484 0.41233 0.043289 0.048356 0.054041 0.060384 0.61114 0.58159 0.55016 82 0.167291 0.184520 0.202954 0.222555 0.17735 0.14768 0.12043 0.09599 0.132206 0.29104 0.25257 0.21542 0.18027 0.163154 0.180371 3.5 Use Table 3.1 to calculate the minimum premium an insurance company should charge for a S1 million two-year term life insurance policy issued to a woman age 50. Assume that the premium is paid at the beginning of each year and that the interest rate is zero.* Table 3.1 Mortality Table of Death Life of Death Life (Years within 1 Year Probability Expectancy within 1 Year Probability Expectancy 76.28 0.00651 0. 0,000291 0.99348 0.99302 0.99273 0,005377 0.000379 0,000221 0.000162 80.49 0.99425 0.97519 0.001467 0.001505 0.001541 0.001573 0.97376 0.97230 0.97080 0.98569 0.98500 0.98426 32 0.000748 0.000794 50.08 38.53 0.002092 0.002240 0.002418 0.002629 0.95908 0.95708 0.95493 0.001287 0.001393 36.700.001517 0.001662 0.97753 0.97627 0.97491 0.97343 42.43 37.61 35.78 29.58 40.54 50 51 0.005038 0.005520 0.006036 0.92472 0.91961 0.91406 0,003182 0,00347 0.003767 0.95829 0.95524 0.95193 0.94834 32.27 31.38 0.86112 0.85147 0.011197 0.012009 0.012867 0.013772 0.006545 0.90927 0.007607 0.008281 0.83042 0.023528 0.025693 0.028041 0.030567 0.73461 0.71732 0.69889 0.67930 0.015728 0.017338 0.019108 0.021041 0.81561 0.80147 0.78616 0.065873 0.073082 0.081070 0.50629 0.47621 0.44484 0.41233 0.043289 0.048356 0.054041 0.060384 0.61114 0.58159 0.55016 82 0.167291 0.184520 0.202954 0.222555 0.17735 0.14768 0.12043 0.09599 0.132206 0.29104 0.25257 0.21542 0.18027 0.163154 0.180371