Wonderful Insurance Company is developing a new disability insurance product and is considering one of the...

 

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Wonderful Insurance Company is developing a new disability insurance product and is considering one of the following two select and ultimate mortality frameworks: (Approach 1) Extract from table (commonly used in the industry): the LTAM Standard Ultimate Life table (SULT), for an individual aged x M[x] + t = MULT + 0.01, t> 0 (Approach 2) Formulaic: P[x] + k = and k +k, where Tx~Generalized de Moivre (w = 120, a = 0.3) for all values of x = 0.75 px + a) Calculate 2129[65] for each of the two approaches. Wonderful Insurance Company is developing a new disability insurance product and is considering one of the following two select and ultimate mortality frameworks: (Approach 1) Extract from table (commonly used in the industry): the LTAM Standard Ultimate Life table (SULT), for an individual aged x M[x] + t = MULT + 0.01, t> 0 (Approach 2) Formulaic: P[x] + k = and k +k, where Tx~Generalized de Moivre (w = 120, a = 0.3) for all values of x = 0.75 px + a) Calculate 2129[65] for each of the two approaches.

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Given the two mortality frameworks lets calculate 22965 for each approach 1 Approach 1 Table Approac... View the full answer