Consider a whole life insurance with annual premiums and a 20-year premium paying term issued to a select life aged 30, with sum insured $200,000 payable at the end of the year of death. (a) Write down an expression for the net future loss random variable. (b) Calculate the net annual premium.

Consider a whole life insurance with annual premiums and a 20-year premium paying term issued to a select life aged 30, with sum insured $200,000 payable at the end of the year of death. (a) Write down an expression for the net future loss random variable. (b) Calculate the net annual premium.

Algebra & Trigonometry with Analytic Geometry

13th Edition

ISBN:9781133382119

Author:Swokowski

Publisher:Swokowski

Chapter10: Sequences, Series, And Probability

Section10.8: Probability

Problem 22E

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Question

1. (AMLCR) 6.1 (a) (b)
Consider a whole life insurance with annual premiums and a 20-year premium paying term issued to a select life aged 30, with sum insured $200,000 payable at the end of the year of
death.
(a) Write down an expression for the net future loss random variable.
(b) Calculate the net annual premium.

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