A life insurance company offers a customer a 4-year terms policy with death benefit (DB) of...
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A life insurance company offers a customer a 4-year terms policy with death benefit (DB) of $200,000. Assume the mortality (death) rate assume she is alive at the beginning of the year for the next 4 years are: 0.00035, 0.0005, 0.00075 and 0.001 (notice these are conditional probabilities) respectively and there isn't any other decrement or other CF. Assume DB is paid at year end. Compute the company's PV of DB using 3.5% interest, round to nearest cents. A life insurance company offers a customer a 4-year terms policy with death benefit (DB) of $200,000. Assume the mortality (death) rate assume she is alive at the beginning of the year for the next 4 years are: 0.00035, 0.0005, 0.00075 and 0.001 (notice these are conditional probabilities) respectively and there isn't any other decrement or other CF. Assume DB is paid at year end. Compute the company's PV of DB using 3.5% interest, round to nearest cents.
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To calculate the Present Value PV of the Death Benefit DB for the 4year term policy well use the for... View the full answer
Related Book For
Financial Algebra advanced algebra with financial applications
ISBN: 978-0538449670
1st edition
Authors: Robert K. Gerver
Posted Date:
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