Question
The questions are complete. A single-premium policy provides the following benefits to a husband and wife each aged 40? (1) An annuity of 5,000 per
The questions are complete.
A single-premium policy provides the following benefits to a husband and wife each aged 40?
(1) An annuity of 5,000 per annum, payable continuously, commencing on the husband's
death within 25 years, or on his survival for 25 years, and continuing so long as either husband
or wife is alive.
(2) A return of half the single premium without interest immediately on the death of the
husband within 25 years, provided that his wife has already died.
The office issuing the contract uses the following basis:
mortality : A1967-70 ultimate
interest : 4% per annum
expenses are ignored.
Calculate the single premium.
A husband and wife, aged 70 and 64 respectively, effect a policy under which the benefits are
(1) a lump sum of 10,000 payable immediately on the first death, and (2) a reversionary
annuity of 5,000 p.a. payable continuously throughout the lifetime of the surviving spouse
after the death of the first. Level premiums are payable annually in advance until the first
death.
Calculate the annual premium on the undernoted basis:
Males' Mortality: a(55) males ultimate
Females' Mortality: a(55) females ultimate
Interest: 8% p.a.
Expenses: 10% of all premiums
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