Question 9 Mark An insurer prices a whole life disability income insurance policy using the model below. Healthy Sick 1 Dead 2 You are given: The policy is issued to a healthy life age 60. Premiums are payable continuously while the insured is healthy. The policy pays a disability income of $50,000 per year continuously while the insured is disabled. A death benefit of $100,000 is payable immediately upon death. . i= 5% The following values have been calculated using an annual effective interest rate of 5%: -02 a00 01 all u 02 -12 A, 60 8.3908 2.6295 10.2084 0.1082 0.46236 0.49667 : : : : : 70 4.9609 3.0177 7.3744 0.0134 0.61070 0.63947 Calculate the net premium reserve at time 10, given the policyholder is healthy at time 10. 106,290 B 106,490 106,690 D 106,890 E 107,090 Question 9 Mark An insurer prices a whole life disability income insurance policy using the model below. Healthy Sick 1 Dead 2 You are given: The policy is issued to a healthy life age 60. Premiums are payable continuously while the insured is healthy. The policy pays a disability income of $50,000 per year continuously while the insured is disabled. A death benefit of $100,000 is payable immediately upon death. . i= 5% The following values have been calculated using an annual effective interest rate of 5%: -02 a00 01 all u 02 -12 A, 60 8.3908 2.6295 10.2084 0.1082 0.46236 0.49667 : : : : : 70 4.9609 3.0177 7.3744 0.0134 0.61070 0.63947 Calculate the net premium reserve at time 10, given the policyholder is healthy at time 10. 106,290 B 106,490 106,690 D 106,890 E 107,090