Basis: Interest rate 6% Mortality table RPH-2014 Disabled Retiree without mortality improvement. Payment timing Life insurance paid at the end of year of death and premium payments are made at the beginning of the year Given the following values: Value Actuarial value of 10-year term life insurance for age 35 0.04191 Actuarial value of 10-year term life annuity for age 35 7.6444 Expenses: Value Underwriting 1,500 Commission as a percent of first premium 75% Renewal expense as a percentage of subsequent premiums 10% Using equivalence principle, find the annual premium for a 100,000 10-year term life insurance for the above policyholder with the benefit and expenses described above: Calculate the present value of the profit for this policy if the policy holder survives the term (express profit as a negative number):
Basis: Interest rate 6% Mortality table RPH-2014 Disabled Retiree without mortality improvement. Payment timing Life insurance paid at the end of year of death and premium payments are made at the beginning of the year Given the following values: Value Actuarial value of 10-year term life insurance for age 35 0.04191 Actuarial value of 10-year term life annuity for age 35 7.6444 Expenses: Value Underwriting 1,500 Commission as a percent of first premium 75% Renewal expense as a percentage of subsequent premiums 10% Using equivalence principle, find the annual premium for a 100,000 10-year term life insurance for the above policyholder with the benefit and expenses described above: Calculate the present value of the profit for this policy if the policy holder survives the term (express profit as a negative number):
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Transcribed Image Text:Basis:
Interest rate
6%
Mortality table
RPH-2014 Disabled Retiree without mortality improvement.
Payment timing
Life insurance paid at the end of year of death and premium payments are made at
the beginning of the year
Given the following values:
Value
Actuarial value of 10-year term life insurance for age 35
0.04191
Actuarial value of 10-year term life annuity for age 35
7.6444
Expenses:
Value
Underwriting
1,500
Commission as a percent of first premium
75%
Renewal expense as a percentage of subsequent premiums
10%
Using equivalence principle, find the annual premium for a 100,000 10-year term life insurance for the
above policyholder with the benefit and expenses described above:
Calculate the present value of the profit for this policy if the policy holder survives the term (express
profit as a negative number):
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