3. For a whole life insurance of 1 on (40), you are given: i 0.06 ·p50...
the answer should be 0.954, please show the work. 3. For a whole life insurance of 1 on (40), you are given: i 0.06 ·p50 = p51 = p52 The net premium policy values at time 10 and 13 are equal. · A50 = 10 Find p50-
08: Assignment - Insuring Your Life 6. Understanding whole life insurance Suppose you are a life insurance broker with a client who is interested in buying a whole life insurance policy. You explain to him the three major types of whole life insurance: continuous premium, also known as limited payment, and single premium. Your client is a 33-year- old man and a father of four who is looking for the policy that provides the most permanent death protection for a...
Understanding universal life insurance Universal life insurance combines elements from term and whole life insurance. Term policies provide a death benefit _______ savings component, whole life policies provide a death benefit _______ savings component, and universal policies provide a death benefit _______ savings component. To understand how universal premiums are allocated, consider the following example. Kathy is a 37-year-old lawyer who has taken out a universal life insurance policy to protect her two children (ages 8 and 6) in the...
4. A fully discrete whole life insurance policy paying $50,000 at the end of the year of death is issued to an individual age 36. The net premium reserve at the end of 10 years is $8,000. The net premium for this policy is $900 and the net premium for an identical policy issued to an individual age 46 is P. The effective annual interest rate of interest is 6%. Determine P.
104 Life Insurance-Term and Other The main purpose of life insurance is to provide financial protection for your dependents in case of your death. You may purchase term life insurance, whole life insurance, limited payment life insurance, of endowment life insurance. ANNUAL PREMIUM - NUMBER OF UNITS PURCHASED X PREMIUM PER $1000 Use the tables below to answer the problems. ANNUAL PREMIUM PER $1000 OF LIFE INSURANCE: 5-YR TERM Age 18 20 25 30 35 45 55 65 Male $...
A manager for an insurance company believes that customers have the following preferences for life insurance products: 30%30% prefer Whole Life, 30%30% prefer Universal Life, and 40%40% prefer Life Annuities. The results of a survey of 330330 customers were tabulated. Is it possible to refute the sales manager's claimed proportions of customers who prefer each product using the data? Product Number Whole 109 Universal 96 Annuities 125 Copy Data Step 1 of 10: State the null and alternative hypothesis. Answer...
3. There are three types of life insurance policies that a sales representative can sell: term, whole life, and universal life. The following matrix gives the number of policies sold by three different representatives during a recent month Whole Universal Life Life 40 Term representaive A 30 representaive B 24 representaive C 34 8 10 32 6 38 Assume representatives A, B, and C earned $4400, $4060, and $4160, respectively, in commissions for these sales. The commission earned depends only...
Question 4 A person, age 80, purchases a whole life insurance policy of 100,000. You are given: (i) The policy is priced with a select period of one year. (ii) The select mortality rate equals 80% of the mortality rate from the Standard Ul- timate Life Table. (ii) Ultimate mortality follows the Standard Ultimate Life Table. (iv) i = 0.05 Calculate the actuarial present value of the death benefits for this insurance. (Answer: 59,050.81)
2. For a special fully discrete 10-payment whole life insurance on (30) with level annual net premium P: (i) The death benefit is equal to 1000 plus the refund, without interest, of the net premiums paid. (ii) i = 0.04 (iii) A30 = 0.30 (iv) 30. 10 = 0.014 (v) (14)zo:707 = 0.048 (vi) ä30:101 - 8.5 Calculate P
If you were to obtain life insurance would you look to obtain a whole life or term policy? Describe each policy, discuss and defend your position. In order to get full points you must answer each element of the question.