Question: actuarial mathematics question Exercise 6.1 Consider a fully discrete whole life insurance with sum insured $200 000 issued to a select life aged 30. The

actuarial mathematics question

Exercise 6.1 Consider a fully discrete whole life insurance with sum insured $200 000 issued to a select life aged 30. The premium payment term is 20 years. Assume that mortality follows the Standard Select Life Table, and assume an interest rate of 5% per year. (a) Write down an expression for the net loss at issue random variable. (b) Calculate the net annual premium. (c) Calculate the probability that the contract makes a profit. Exercise 6.1 Consider a fully discrete whole life insurance with sum insured $200 000 issued to a select life aged 30. The premium payment term is 20 years. Assume that mortality follows the Standard Select Life Table, and assume an interest rate of 5% per year. (a) Write down an expression for the net loss at issue random variable. (b) Calculate the net annual premium. (c) Calculate the probability that the contract makes a profit

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