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Consider a 30-year term insurance issued to a life aged 35 with annual premiums, with sum insured $600.000 payable at the end of the year
Consider a 30-year term insurance issued to a life aged 35 with annual premiums, with sum insured $600.000 payable at the end of the year of death. Write down an expression for the future loss random variable 1=5% Because of the difficulty in writing math, K stands for K35 the kurtate life function for a person aged 35 O a L=600000 (1.05)-(K+1) 1K3301-P (1.05/05) (1 - (105)-min(K+1, 30) Ob L=600000 (1105)-Min(30,K+1) P (1.05/05) [ 1 - (105)-min(K+1, 30), OC L=600000 (1 053-Kp (1.05/05) 1 - (1 05) K1 Od L=600000 (105)-(K+1).P (1 05/05) [ 1 - (1.05)-(K+1)]
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