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Assume that the interest rates for all maturities are 5% and premiums are paid once a year. What is an insurance companys break-even premium for
Assume that the interest rates for all maturities are 5% and premiums are paid once a year. What is an insurance companys break-even premium for $50,000 of term life insurance for a woman of average health aged 70 if the probability of death in a current year is .018406 and .020342? Suppose next that the term insurance last 2 years and that this happens at 18 months, what would be the breakeven premium for the policy?
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