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You are given the following extract from a select life table with four-year select period. A select individual aged 40 purchased a four-year term insurance
You are given the following extract from a select life table with four-year select period. A select individual aged 40 purchased a four-year term insurance with a sum insured of $200 000 (payable at the end of the year of death, if death occurs within the term), with premiums payable annually throughout the term [x] |[x]+1 [x]+2 [x]+3 lx+4 x +4 44 [40] 100 000 99899 99 724 99 520 99 288 [41] 99 802 99 689 99 502 99283 99 033 [42] 99 597 99 471 99 628 99030 98 752 45 46 The basis for the calculations is an effective rate of interest of 6% per year, and no expenses A. Find the premium for the term insurance P= Round answer to 2 digits. B. Calculate the mean of the present value of future loss random variable, L1, for the term insurance E(L1) Round answer to 2 digits You are given the following extract from a select life table with four-year select period. A select individual aged 40 purchased a four-year term insurance with a sum insured of $200 000 (payable at the end of the year of death, if death occurs within the term), with premiums payable annually throughout the term [x] |[x]+1 [x]+2 [x]+3 lx+4 x +4 44 [40] 100 000 99899 99 724 99 520 99 288 [41] 99 802 99 689 99 502 99283 99 033 [42] 99 597 99 471 99 628 99030 98 752 45 46 The basis for the calculations is an effective rate of interest of 6% per year, and no expenses A. Find the premium for the term insurance P= Round answer to 2 digits. B. Calculate the mean of the present value of future loss random variable, L1, for the term insurance E(L1) Round answer to 2 digits
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