Imagine that your probability of death in the next year is 0.05 percent (that's 5/100th of one percent). You are thinking of taking out a 1 year term life insurance policy for 176 thousand USD, wherein the insurance company will pay that amount if you die during the year.

What is the magnitude of the expected loss for the insurance company if they issue you this insurance? (This is roughly how much they would charge you for it, plus some premium for profit.)