Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help! 7. A 20-year endowment insurance with sum insured $100,000 is issued to a life aged 50. The sum insured is payable at the end

help!
image text in transcribed
7. A 20-year endowment insurance with sum insured $100,000 is issued to a life aged 50. The sum insured is payable at the end of the year of death or on survival to the maturity date. Premiums are payable annually in advance until the policyholder reaches age 60. No premium is paid after age 60. Assume the following premium basis: (i) expenses of 5% of each gross premium including the first, (ii) interest is 5% per year, (iii) Standard Ultimate Survival Model. (a) Calculate the gross premium. (b) Calculate 2V, the policy value at the end of the second year, just before the third premium is due. (c) Calculate 15V, the policy value at the end of the fifteenth year. 7. A 20-year endowment insurance with sum insured $100,000 is issued to a life aged 50. The sum insured is payable at the end of the year of death or on survival to the maturity date. Premiums are payable annually in advance until the policyholder reaches age 60. No premium is paid after age 60. Assume the following premium basis: (i) expenses of 5% of each gross premium including the first, (ii) interest is 5% per year, (iii) Standard Ultimate Survival Model. (a) Calculate the gross premium. (b) Calculate 2V, the policy value at the end of the second year, just before the third premium is due. (c) Calculate 15V, the policy value at the end of the fifteenth year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ABC Finance Coloring Book Familys First Financial Literacy Book

Authors: Jason Conger

1st Edition

1955961026, 978-1955961028

More Books

Students also viewed these Finance questions

Question

Tool (SIP): Go back and rework your school improvement plan so that

Answered: 1 week ago