A company sells a 20-year endowment assurance policy to a life aged 35. The sum assured...

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A company sells a 20-year endowment assurance policy to a life aged 35. The sum assured of RM100,000 is payable the end of the year of death, provided that this occurs during the term of the policy. Premiums are payable in advance for the duration of 20 years. (a) On the basis of A1967-70 mortality and an effective interest rate of 4% per annum (i) Calculate the quarterly premium of the policy. (ii) Calculate the monthly premium of the policy. (iii) Discuss the result between the premium in (i) and (ii). (b) If the company sells the policy to a selected life age 35, on the basis of A1967-70 mortality and an effective interest rate of 4% per annum (1) Calculate the quarterly premium of the policy. (ii) Calculate the monthly premium of the policy. (iii) Discuss the result between the premium in (a) & (b) - (i) & (ii) (c) If the sum assured of RM100,000 is payable at the moment of death, on the basis of A1967-70 mortality and an effective interest rate of 4% per annum (i) Calculate the quarterly premium of the policy. (ii) Calculate the monthly premium of the policy. (iii) Discuss the result between the premium in (a) & (c) - (i) & (ii) (d) If the sum assured were to be doubled, interpret the expected changes on the premium. (1) Calculate the quarterly premium of the policy. (ii) Calculate the monthly premium of the policy. (iii) Discuss the result between the premium in (a) & (d) - (i) & (1) A company sells a 20-year endowment assurance policy to a life aged 35. The sum assured of RM100,000 is payable the end of the year of death, provided that this occurs during the term of the policy. Premiums are payable in advance for the duration of 20 years. (a) On the basis of A1967-70 mortality and an effective interest rate of 4% per annum (i) Calculate the quarterly premium of the policy. (ii) Calculate the monthly premium of the policy. (iii) Discuss the result between the premium in (i) and (ii). (b) If the company sells the policy to a selected life age 35, on the basis of A1967-70 mortality and an effective interest rate of 4% per annum (1) Calculate the quarterly premium of the policy. (ii) Calculate the monthly premium of the policy. (iii) Discuss the result between the premium in (a) & (b) - (i) & (ii) (c) If the sum assured of RM100,000 is payable at the moment of death, on the basis of A1967-70 mortality and an effective interest rate of 4% per annum (i) Calculate the quarterly premium of the policy. (ii) Calculate the monthly premium of the policy. (iii) Discuss the result between the premium in (a) & (c) - (i) & (ii) (d) If the sum assured were to be doubled, interpret the expected changes on the premium. (1) Calculate the quarterly premium of the policy. (ii) Calculate the monthly premium of the policy. (iii) Discuss the result between the premium in (a) & (d) - (i) & (1)

Answer rating: 100% (QA)

a i The quarterly premium of the policy is RM52254 Calculation Sum Assured SA RM100000 Interest Rate r 4 Life Age L 35 Premium SA x 1 1 r 20 r x 1 r L ... View the full answer