Actuarial Science LTAM

A whole life insurance with sum insured $200,000 payable at the time of death is issued to [39]. Premiums are paid monthly while the insured survives. Pricing is based on SULT mortality, 5% interest and assuming deaths are uniformly distributed across integer ages.

a) Find the Expected Present Value of the death benefit.

b) Find the monthly net premium.

c) Find the standard deviation of the present value of the net premiums.

d) Find the value of Net Loss at Issue Random Variable if death occurs two and a half months after the 30th policy anniversary.