Question 2

cson and 2 are based on the following assumptions: A new born's survival function S0(X) TOLOws constant force mortality model, with a force of mortality of 0.02. Force ot interest is 6%. reux is currently 32 years old. He purchases a 5-year deferred whole life insurance now: What is the insurance cost of the policy per $1000 of death benefit if the insurer defines cost as APV + two standard deviation of the present value random variable (PVRV) Z? A. Less than $400 B. Between $400 and $500 C. Between $500 and $600 D. More than $600 - Q2. What is the insurance cost of the policy per $1000 of death benefit if the insurer wants to ensure 80% the time the actual cost is covered? A. Less than $400 B. Between $400 and $500 C. Between $500 and $600 D. More than $600 cson and 2 are based on the following assumptions: A new born's survival function S0(X) TOLOws constant force mortality model, with a force of mortality of 0.02. Force ot interest is 6%. reux is currently 32 years old. He purchases a 5-year deferred whole life insurance now: What is the insurance cost of the policy per $1000 of death benefit if the insurer defines cost as APV + two standard deviation of the present value random variable (PVRV) Z? A. Less than $400 B. Between $400 and $500 C. Between $500 and $600 D. More than $600 - Q2. What is the insurance cost of the policy per $1000 of death benefit if the insurer wants to ensure 80% the time the actual cost is covered? A. Less than $400 B. Between $400 and $500 C. Between $500 and $600 D. More than $600