Question
Beneflits: New Pollcy (I) A 25-year endowment assurance with a sum Insured of $800,000 payable on immediate death of on survival to age 65 years.
Beneflits: New Pollcy\ (I) A 25-year endowment assurance with a sum Insured of
$800,000
payable on\ immediate death of on survival to age 65 years.\ (ii) An annuity of
$60,000
per annum payable annually in advance for flve years\ certain and life thereafter and starting at age 65 years.\ Premlums: New Polloy\ Level annual premiums are payable in advance from the beginning of the eleventh year\ until age 65 years of earlier death.\ Calculate:\ a) The premium on the original policy\ b) The benefit reserve on the old policy at the end of the
10^(th )
year\ c) The premium for the new policy\ d) The benefit reserve on the policy at the end of the fifteenth
(15^(th ))
year, measured from\ age 40 years.\ Use your Tables.\ 5 marks\ 7 marks\ 8 marks\ 10 marks\ QUESTION 3\ a) For a fully discrete whole life insurance of
$1000
on (50) you are given the following:\
,i=0.06
\ Mortality follows Tables\ At the end of the tenth year the insured elects an option to retain the coverage\ for
$1000
but to pay premiums for at most the next 5 years.\ Calculate\ (i) The revised annual benefit premium for at most the next 5 years\ (ii) The benefit reserve at the end of the eleventh year.\ (10 marks)\ b) For a special whole life insurance on (30), you are given the following:\ (i) It pays
$10,000
on survival to each of 40 years, 50 years and 60 years. In addition,\ it pays
$100,000
at the end of the year of death.\ Calculate the level annual premium payable in advance throughout life.
P_(n)
\ (ii) At the end of the tenth policy year (after the survival benefit was paid) the policy\ was changed to a 25-year Endowment policy counting from the outset. This policy\ will pay
$60,000
at the end of the year of death or on survival to age 55 years.\ Calculate the NEW annual premium payable for at most 10 years.
Benefits: New Pollcy (1) A 25-year endowment assurance with a sum Insured of $800,000 payable on immediate death or on survival to age 65 years. (ii) An annuity of $60,000 per annum payable annually in advance for flive years certain and life thereafter and starting at age 65 years. Premlums: New Pollcy Level annual premiums are payable in advance from the beginning of the eleventh year until age 65 years of earlier death. Calculate: a) The premium on the original policy b) The benefit reserve on the old policy at the end of the 10th year 5 marks c) The premium for the new policy 7 marks d) The benefit reserve on the policy at the end of the fifteenth (15t) year, measured from age 40 years. 10 marks Use your Tables. QUESTION 3 a) For a fully discrete whole life insurance of $1000 on (50) you are given the following: - i=0.06 - Mortality follows Tables - At the end of the tenth year the insured elects an option to retain the coverage for $1000 but to pay premiums for at most the next 5 years. Calculate (i) The revised annual benefit premium for at most the next 5 years (ii) The benefit reserve at the end of the eleventh year. (10 marks) b) For a special whole life insurance on (30), you are given the following: (i) It pays $10,000 on survival to each of 40 years, 50 years and 60 years. In addition, it pays $100,000 at the end of the year of death. Calculate the level annual premium payable in advance throughout life. Pn (ii) At the end of the tenth policy year (after the survival benefit was pald) the policy was changed to a 25 -year Endowment policy counting from the outset. This policy will pay $60,000 at the end of the year of death or on survival to age 55 years. Calculate the NEW annual premium payable for at most 10 years. (15 marks) Use your Tables
Beneflits: New Pollcy\ (I) A 25-year endowment assurance with a sum Insured of
$800,000
payable on\ immediate death of on survival to age 65 years.\ (ii) An annuity of
$60,000
per annum payable annually in advance for flve years\ certain and life thereafter and starting at age 65 years.\ Premlums: New Polloy\ Level annual premiums are payable in advance from the beginning of the eleventh year\ until age 65 years of earlier death.\ Calculate:\ a) The premium on the original policy\ b) The benefit reserve on the old policy at the end of the
10^(th )
year\ c) The premium for the new policy\ d) The benefit reserve on the policy at the end of the fifteenth
(15^(th ))
year, measured from\ age 40 years.\ Use your Tables.\ 5 marks\ 7 marks\ 8 marks\ 10 marks\ QUESTION 3\ a) For a fully discrete whole life insurance of
$1000
on (50) you are given the following:\
,i=0.06
\ Mortality follows Tables\ At the end of the tenth year the insured elects an option to retain the coverage\ for
$1000
but to pay premiums for at most the next 5 years.\ Calculate\ (i) The revised annual benefit premium for at most the next 5 years\ (ii) The benefit reserve at the end of the eleventh year.\ (10 marks)\ b) For a special whole life insurance on (30), you are given the following:\ (i) It pays
$10,000
on survival to each of 40 years, 50 years and 60 years. In addition,\ it pays
$100,000
at the end of the year of death.\ Calculate the level annual premium payable in advance throughout life.
P_(n)
\ (ii) At the end of the tenth policy year (after the survival benefit was paid) the policy\ was changed to a 25-year Endowment policy counting from the outset. This policy\ will pay
$60,000
at the end of the year of death or on survival to age 55 years.\ Calculate the NEW annual premium payable for at most 10 years.
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