Question 4 (20 marks) Suppose you are an actuarial consultant hired to determine life insurance premiums in the fictional country of Zamunda. Owing to continuing warfare, the mortality rate in the country is extremely high. For all of the following calculations use the mortality table given below, assume the relevant discount rate is 4% Age 28 29 30 31 32 33 34 35 Number Alive 100,000 99,700 99,380 99,040 98,680 98,300 97,900 97,480 Mortality Table (Males) Number Dying 300 320 340 360 380 400 420 440 Deaths per 1000 3.00 3.21 3.42 3.63 3.85 4.07 4.29 4.51 Present Value of $1 at 4% Year Factor 1 0.9615 2 0.9246 3 0.8890 4 0.8548 Required: a) Calculate the premium per $1,000 of coverage on a one-year term policy for a 30-year old male. Show all working. (3 marks) b) Calculate the net single premium per $1,000 of coverage on a three-year term policy for a 30-year old male. Show all working. (10 marks) c) Calculate the net level premium per $1,000 of coverage on a three-year term policy for a 30-year old male. Show all working. (7 marks) Question 4 (20 marks) Suppose you are an actuarial consultant hired to determine life insurance premiums in the fictional country of Zamunda. Owing to continuing warfare, the mortality rate in the country is extremely high. For all of the following calculations use the mortality table given below, assume the relevant discount rate is 4% Age 28 29 30 31 32 33 34 35 Number Alive 100,000 99,700 99,380 99,040 98,680 98,300 97,900 97,480 Mortality Table (Males) Number Dying 300 320 340 360 380 400 420 440 Deaths per 1000 3.00 3.21 3.42 3.63 3.85 4.07 4.29 4.51 Present Value of $1 at 4% Year Factor 1 0.9615 2 0.9246 3 0.8890 4 0.8548 Required: a) Calculate the premium per $1,000 of coverage on a one-year term policy for a 30-year old male. Show all working. (3 marks) b) Calculate the net single premium per $1,000 of coverage on a three-year term policy for a 30-year old male. Show all working. (10 marks) c) Calculate the net level premium per $1,000 of coverage on a three-year term policy for a 30-year old male. Show all working. (7 marks)