Q4 all parts need

QUESTION 4 Edward purchased a Type B universal life insurance policy with an initial face amount of 100,000 and an annual premium of 50,000. You are given: Assume that the policy remains in force for 3 years and all cash flows occur at policy anniversaries. Suppose Edward pays the full premium in the first two years but only half in the third year. (a) State two differences between a traditional life insurance and a universal life insurance. [4 marks] (b) Briefly explain the corridor factor requirement and its purpose. [2 marks] (c) Briefly explain the difference between the CoI interest rate and the credited interest rate. [1 mark] (d) Project the account value at the end of each of the first two years. [10 marks ] (e) Project the amount received by Edward if: i. He dies in the third year. ii. He surrenders in the third year. [8 marks] [Total 25 marks] QUESTION 4 Edward purchased a Type B universal life insurance policy with an initial face amount of 100,000 and an annual premium of 50,000. You are given: Assume that the policy remains in force for 3 years and all cash flows occur at policy anniversaries. Suppose Edward pays the full premium in the first two years but only half in the third year. (a) State two differences between a traditional life insurance and a universal life insurance. [4 marks] (b) Briefly explain the corridor factor requirement and its purpose. [2 marks] (c) Briefly explain the difference between the CoI interest rate and the credited interest rate. [1 mark] (d) Project the account value at the end of each of the first two years. [10 marks ] (e) Project the amount received by Edward if: i. He dies in the third year. ii. He surrenders in the third year. [8 marks] [Total 25 marks]