Question
Third Question Assume two brothers and one sister would like to purchase a joint life insurance policy, their ages are 34, 28, and 24 years
Third Question
Assume two brothers and one sister would like to purchase a joint life insurance policy, their ages are 34, 28, and 24 years respectively, if one of them died the policy implication entitled the others cash amount of the indemnification amounted to JD 100,000 each. In case two individuals died, the policy entitled the last survivor for 500,000. In case none of them died, the insurer will pay the cash accumulation which is estimated to JD 150,000, the term of the policy is 10 years. Use life table to answer the following requirements.
- What is the probability that the insurance co. will pay JD 200,000?
- What is the probability that the insurer will pay JD 500,000?
- What is the probability that the insurer will pay JD 150,000?
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Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
