On 1 January 2010 an office issued a number of annual premium policies to a group of lives, each of whom was then aged exactly 45. All policies were for a term of 20 years and
were of the following types: endowment assurances under which the sum assured was payable on survival to the end of the term or at the end of the year of earlier death temporary assurances under which the sum assured was payable only at the end of the year of death within the policy term pure endowments under which the only benefit payable is the sum assured on survival to the end of the policy term.

Assuming that there is no source of decrement other than death, calculate the profit or loss from mortality for the calendar year 2019 in respect of the policies issued to this group of lives, given the following information:

Type of policy Sums assured in force Sums assured

on 1 January 2019 by death during 2019 discontinued

Endowment assurance GHS 600,000 GHS 4,000

Temporary assurance GHS 200,000 GHS 2,000

Pure endowment GHS 80,000 GHS 500

Reserving basis: AM92 Ultimate mortality, 4% pa interest. Ignore expenses.

Answer rating: 100% (QA)

i Definitions The death strain at risk for a policy for year t1 t012 is the excess of the sum assure ... View the full answer