Objective: The intent of this homework is to show how insurers calculate the pure premium for life insurance policies. To receive full credit for this assignment you must show your math. For parts 2 and 3, please include a table showing how you determined the numbers. This assignment must be submitted to Brightspace by 11:59 pm on March 10, 2018.

1. The following is a partial mortality table that the XYZ Life Insurance Company uses in determining premium. XYZ has determined that it can earn 6% on its investments. Assume that 8,450,645 females are alive at the beginning of year 1 and that the number of deaths in any year = P(death in year t)*# living at the beginning of year t.

Beginning of Year	Age	Probability of Death During Year
1	50	0.0059
2	51	0.0064
3	52	0.0077
4	53	0.0084
5	54	0.0099

(continued from above) Assume that all death benefits are paid out at the end of the year. If the death benefit was $1000, what is the net single premium that XYZ would charge for a 5 year policy offered to females age 50 (Include partial deaths in the NSP calculation, ignore any markup adjustments to premium, and round premium to 2 decimal places)(Note: To check calculation, round premium to 6 decimal places)

(To solve, take the number of deaths in the year (do not round) and multiply by the death benefit of each policy for these individuals. Find the present value of this amount. This is the present value of the death proceeds payable for the year (in todays dollars). Add up the present values for each of the five years and then divide by the original number of lives.)