Question
Question B1 Mrs. Chan purchased the HKMC Annuity plan at the age 69 for a s ingle premium of HK$1,000,000. Below is the extract of
Question B1
Mrs. Chan purchased the HKMC Annuity plan at the age 69 for a s
ingle premium of
HK$1,000,000.
Below is the extract of guarantee monthly annuity payment table
(HK$) for male and female.
Female
(Single premium HK$1,000,000)
Age Last
Birthday at
Application
Guaranteed Monthly Annuity
Payment (The amount will be
determined at the outset and will
remain unchanged throughout the
whole of your life.)
Guaranteed
Period
Guaranteed cash value of
partial withdrawal after
receiving the 50
th
guaranteed
monthly annuity payment
65 HK$5,300 199 months HK$548,000
66 HK$5,400 195 months HK$552,000
67 HK$5,510 191 months HK$557,000
68 HK$5,620 187 months HK$561,000
69 HK$5,730 184 months HK$565,000
70 HK$5,840 180 months HK$568,000
Mrs. Chan wishes to partially surrender an amount of HK$150,000
after receiving the 50
th
guaranteed monthly annuity payment.
(a)
What are the guaranteed monthly annuity payment and number of g
uaranteed monthly
annuity payments provided by Mrs Chan's plan?
(2 marks)
(b)
What will be the reduction ratio and reduced guaranteed monthly
annuity payment after
the partial surrender? Show all your workings. Round your final
answer to integer.
(4 marks)
(c)
What will be the reduced guaranteed cash value at the point of
time after the partial
surrender and reduced lump sum death benefit value at the point
of time after the partial
surrender? Show all your workings. Round your final answer to i
nteger.
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