Question 7 (13 marks) Julius, aged 55, buys a special participating, 10-year endowment insurance policy with a single premium up front. The initial sum insured is $100,000 and the premium allows for compound bonuses on the death benefit of 0.96153% per annum and simple bonuses on the survival benefit of 2% per annum. The death benefit is payable at the end of the year of death. Basis: AM92 Select, Interest 5% p.a. a) Calculate the single premium payable under this policy. (5 marks) b) After 1 year, no bonuses have been declared. Calculate the prospective policy value allowing for future planned bonuses. (5 marks) c) After 5 years, still no bonuses have been declared. Using only tabulated values provided in AM92, estimate the prospective policy value with no allowance for future bonuses. (3 marks) Question 7 (13 marks) Julius, aged 55, buys a special participating, 10-year endowment insurance policy with a single premium up front. The initial sum insured is $100,000 and the premium allows for compound bonuses on the death benefit of 0.96153% per annum and simple bonuses on the survival benefit of 2% per annum. The death benefit is payable at the end of the year of death. Basis: AM92 Select, Interest 5% p.a. a) Calculate the single premium payable under this policy. (5 marks) b) After 1 year, no bonuses have been declared. Calculate the prospective policy value allowing for future planned bonuses. (5 marks) c) After 5 years, still no bonuses have been declared. Using only tabulated values provided in AM92, estimate the prospective policy value with no allowance for future bonuses