[EXAM LTAM] 9. A two-year term disability income insurance, issued to a Healthy life age x, offers a

benefit of 25,000 at the end of each year if the policyholder is Disabled at that time.

Healthy (State 0) Disabled (State 1)

Dead (State 2)

You are given that:

(i) P=0.92, p=0.06,P'=0.40,fort=0,1

(il) i>0

(iii) The expected present value of the benefits is 3,000.

Calculate i.

(A) 0.08

(B) 0.09

(C) 0.10

(D) 0.11

(E) 0.12

9. A two-year term disability income insurance, issued to a Healthy life age x, offers a benefit of 25,000 at the end of each year if the policyholder is Disabled at that time. Healthy State 0 Disabled State 1 Dead State 2 You are given that: 01 (i) pos= 0.92, p=0.06, p = 0.40, for t=0,1 (ii) i>0 (iii) The expected present value of the benefits is 3,000. Calculate i. (A) 0.08 (B) 0.09 (C) 0.10 (D) 0.11 (E) 0.12 9. A two-year term disability income insurance, issued to a Healthy life age x, offers a benefit of 25,000 at the end of each year if the policyholder is Disabled at that time. Healthy State 0 Disabled State 1 Dead State 2 You are given that: 01 (i) pos= 0.92, p=0.06, p = 0.40, for t=0,1 (ii) i>0 (iii) The expected present value of the benefits is 3,000. Calculate i. (A) 0.08 (B) 0.09 (C) 0.10 (D) 0.11 (E) 0.12