Acturial Math problem: A 1-year term insurance provides a death benefit of 20, 000, payable at the end of the policy year. On the basis of the 2001 CSO Table of Mortality for males and using an effective rate of interest of 5% and 6% per annum, respectively, calculate the premium for a life aged (i) 45, (ii) 55, and (iii) 65, respectively. Comment on the ordering of these premiums (including your observation and explanation on why this is the case).

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
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Acturial Math problem:
A 1-year term insurance provides a death
benefit of 20, 000, payable at the end of the
policy year. On the basis of the 2001 CSO
Table of Mortality for males and using an
effective rate of interest of 5% and 6% per
annum, respectively, calculate the premium
for a life aged (i) 45, (ii) 55, and (iii) 65,
respectively. Comment on the ordering of
these premiums (including your observation
and explanation on why this is the case).
Transcribed Image Text:Acturial Math problem: A 1-year term insurance provides a death benefit of 20, 000, payable at the end of the policy year. On the basis of the 2001 CSO Table of Mortality for males and using an effective rate of interest of 5% and 6% per annum, respectively, calculate the premium for a life aged (i) 45, (ii) 55, and (iii) 65, respectively. Comment on the ordering of these premiums (including your observation and explanation on why this is the case).
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