Question

I. (SOA May 1988) Assume that the force of mortality is μ, a constant. Consider a single-premium whole life insurance that provides a death bene fit, payable at the moment of death, of F plus a return of the net single premium with interest. The net single premium for this insurance is evaluated at force of interest o, and the return-of-premium benefit is determined at force of interest co, where e is a positive constant. Express the net single premium in terms of μ, δ, c and F.

Answer 1

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upan cancellcution af an nsurane0 policy pr o the oxpination dose ths anuteal the mimi um is sekined t0 the Poshion-of- nSutedl 0 ducing youn co Uenoge