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A whole life policy for 50,000 is issued to (65). The death benefit is payable at the end of the year of death. The
A whole life policy for 50,000 is issued to (65). The death benefit is payable at the end of the year of death. The level premiums are payable for the life of the insured. You are given: (a) Mortality follows the Standard Ultimate Life Table. (b) i = 5%. (c) Deaths are uniformly distributed between integer ages. (d) The equivalence principle applies. For this life insurance: (a) Calculate the level annual net premium payable at the beginning of each year. (b) Write an expression for the loss at issue random variable Lon (c) Calculate the Var[L]. (d) Calculate the monthly net premium payable at the beginning of each month.
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