Ark Life would like to provide 10 year term insurance and annuity contract to individuals with...

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Ark Life would like to provide 10 year term insurance and annuity contract to individuals with age range between (25) and (40) with the following benefit. ● On death before age 55, a benefit of 250,000 is paid immediately. No benefit is payable on the death after age 55. On attaining age 55, the life receives an annuity of 10,000 per annum payable monthly in arrears. Level premiums are payable monthly in advance for 10 years. Mortality follows the constructed life tables and interest rate is 5% pa. Calculate the level monthly premium the insurance company shall charge individuals for each age between (25) to (40). Ark Life would like to provide 10 year term insurance and annuity contract to individuals with age range between (25) and (40) with the following benefit. ● On death before age 55, a benefit of 250,000 is paid immediately. No benefit is payable on the death after age 55. On attaining age 55, the life receives an annuity of 10,000 per annum payable monthly in arrears. Level premiums are payable monthly in advance for 10 years. Mortality follows the constructed life tables and interest rate is 5% pa. Calculate the level monthly premium the insurance company shall charge individuals for each age between (25) to (40).

Answer rating: 100% (QA)

The monthly premium for a 10 year term life insurance policy with a death benefit of 250 0... View the full answer