An insurance company issues a whole life insurance to (50). The death benefit of $1,000,000 is...
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An insurance company issues a whole life insurance to (50). The death benefit of $1,000,000 is payable at the end of month of death. The policy is purchased with monthly premium P. An expense of $100 is incurred at the time of issue of the policy. An expense of 0.03P is incurred at each premium payment including the first one. You are given that a(12) = 1.00020 and 3(12) = 0.46651. Assume UDD and Standard Ultimate Survival Model. Assume i 5%. - (a) Calculate the monthly premium P using the equivalence principle. (b) Calculate the policy value at the end of the first month, i.e., 1 V. 12 An insurance company issues a whole life insurance to (50). The death benefit of $1,000,000 is payable at the end of month of death. The policy is purchased with monthly premium P. An expense of $100 is incurred at the time of issue of the policy. An expense of 0.03P is incurred at each premium payment including the first one. You are given that a(12) = 1.00020 and 3(12) = 0.46651. Assume UDD and Standard Ultimate Survival Model. Assume i 5%. - (a) Calculate the monthly premium P using the equivalence principle. (b) Calculate the policy value at the end of the first month, i.e., 1 V. 12
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Related Book For
Business Law Principles for Today's Commercial Environment
ISBN: 978-1305575158
5th edition
Authors: David P. Twomey, Marianne M. Jennings, Stephanie M Greene
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