Question 4 A father age 45 is planning to buy an insurance policy of RM10,000 for his son at age 20. He reviews some insurance products offered while considering the premium he should pay. (a) Show that the net single premium for the whole life policy, Ax = v(qx +PxAx+1) where v is a discounting factor, q, and p, respectively represent the probability that (x) will die before the attainment of age x + 1 and the probability that (x) will survive to age x + 1. (7 marks) (b) Based on Question 4(a), how much the net single premium should the father pay if he decided to choose that particular policy? (3 marks) (c) An insurance policy is offered for his son provides for the payment of RM20,000 in the event of the death of the insured prior to age 60. If the insured is living at that age, he is to receive a whole life annuity of RM1000 per year, given the first payment to be made at 60. Calculate the net annual premium payable up to (but not including) age 60. (6 marks) Question 4 A father age 45 is planning to buy an insurance policy of RM10,000 for his son at age 20. He reviews some insurance products offered while considering the premium he should pay. (a) Show that the net single premium for the whole life policy, Ax = v(qx +PxAx+1) where v is a discounting factor, q, and p, respectively represent the probability that (x) will die before the attainment of age x + 1 and the probability that (x) will survive to age x + 1. (7 marks) (b) Based on Question 4(a), how much the net single premium should the father pay if he decided to choose that particular policy? (3 marks) (c) An insurance policy is offered for his son provides for the payment of RM20,000 in the event of the death of the insured prior to age 60. If the insured is living at that age, he is to receive a whole life annuity of RM1000 per year, given the first payment to be made at 60. Calculate the net annual premium payable up to (but not including) age 60. (6 marks)