For lives aged 50 and over, the total force of mortality due to all causes is...

 

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For lives aged 50 and over, the total force of mortality due to all causes is assumed to be equal to that implied by the Tables. Death due to accidental causes is assumed to occur with an annual constant force of 0.003. Seventy percent (70%) of all other deaths are assumed to be caused by certain specified diseases (heart disease, cancer and stroke). An insurance company issued a special whole life insurance to a man aged 50, which provides the following benefits: • $250,000 on accidental death • $150,000 on death from one of the specified diseases $75,000 on death from any other cause All benefits are paid immediately on death. A level annual premium is payable for the whole of life. Calculate the amount of annual premium, assuming the company earns interest at 6% a year. For lives aged 50 and over, the total force of mortality due to all causes is assumed to be equal to that implied by the Tables. Death due to accidental causes is assumed to occur with an annual constant force of 0.003. Seventy percent (70%) of all other deaths are assumed to be caused by certain specified diseases (heart disease, cancer and stroke). An insurance company issued a special whole life insurance to a man aged 50, which provides the following benefits: • $250,000 on accidental death • $150,000 on death from one of the specified diseases $75,000 on death from any other cause All benefits are paid immediately on death. A level annual premium is payable for the whole of life. Calculate the amount of annual premium, assuming the company earns interest at 6% a year.

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