F.A.S.T

A life insurance company issues a deferred annuity contract to a life aged exactly 40. Premiums of 4,500 are payable annually in advance for 25 years or until earlier death. The policy provides the following benefits: On survival to age 65, an annuity of 15,000 pa is payable continuously for the whole of the policyholder's life. In the event of the policyholder's death during the deferment period, a lump sum is payable at the end of the year of death equal to the total amount of premiums paid to date, without interest. Calculate the total expected present value of benefits from this policy. Basis Mortality: AM92 Select before age 65 PMA92C20 after age 65 Interest: 4% pa effective A life insurance company issues a deferred annuity contract to a life aged exactly 40. Premiums of 4,500 are payable annually in advance for 25 years or until earlier death. The policy provides the following benefits: On survival to age 65, an annuity of 15,000 pa is payable continuously for the whole of the policyholder's life. In the event of the policyholder's death during the deferment period, a lump sum is payable at the end of the year of death equal to the total amount of premiums paid to date, without interest. Calculate the total expected present value of benefits from this policy. Basis Mortality: AM92 Select before age 65 PMA92C20 after age 65 Interest: 4% pa effective