Suppose a life insurance company sells a

$160,000

1-year term life insurance policy to a

20-year-old

female for

$340.

According to the National Vital Statistics Report, 58(21), the probability that the female survives the year is

0.999544.

The expected value of this policy to the insurance company is

$267.04.

What is the standard deviation of the value of the life insurance policy? Why is the value so high?