Be sure to download the Financial Modeling Project excel le titled "Actuarial Mathematics Financial Modeling Project template."
Sarah Paul, FSA (age 27) is going to earn a salary of $100,000 in 2017. Her salary is expected to increase by 3% per year starting in 2018, all the way until she retires at age 65. Sarah is looking to buy life insurance that will pay out a benet to her beneciary if she passes away at or before age 65. She can choose to purchase a life insurance policy where the benet is a at amount (e.g. $50,000) or a percent of her salary (e.g. 200% of her salary).
Your overall task is to create a nancial model in Excel that calculates the life insurance premium that Sarah Paul would have to pay.
Task #1: Complete the model template tab projection
Go to the tab model template. Complete the projection of Sarah's salary until age 65. Complete all the projection for rows 10 to 18 under Life Insurance Calculation. Use the following actuarial assumptions
Salary growth per year = 3%.
Benet Flat Amount = $50; 000
Benet as a % of Salary = 200%
Probability of dying within one year = Use the Female Probability of Dying within one year values found on the Mortality Table tab.
Probability of surviving within one year = 1 Probability of dying within one year

Answer rating: 100% (QA)

Task 2 Calculate the life insurance premium Go to the Premium tab Calculate the life insuran... View the full answer