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mchung
11-24-2002, 03:51 AM
I have some questions regarding course 3.

1. An insurance policy is sold to (25). It provides the following
schedules of benefits

(i) \$100,000 of death benefits occurs before age 40.
(ii) \$50,000 if death occurs between age 40 and age 65.
(iii) \$30,000 payable at age 65 if the insured is alive at that age.

All death benefits are payable at the moment of death.
Express the net single premium for the insurance in the simplest form.

2. Prove that a constant change in the force of interest or the
same constant change in the force of mortality have the same effect
on the value of the whole life annuity.

3. Given the following tabular values, using an interest rate of 10% per annum, obtain an approximate value for the force of mortality at age 50.

x ax
49 9.030
50 9.010
51 9.0000

Would anyone help me?

Regards,
Michael

Macroman
11-24-2002, 02:32 PM
These are not exactly exam type questions which is what we mostly focus on here.

Number 1 is a question which is something you need to be able to do for the exam, recombine the related types of insurance peure endowment, term, whole life and endowment insurance.

With the same endpoint, endowment insurance = pure endowment + term

there is a similar formula for whole life where the endowment is equal in value to the remaining whole life...Simplest terms--- I gues this is something defined by your instructor.

2. the formula for a whole life annuity with constant force of interest and mortality is 1/(force of interest + force of mortality). if you can use that formula then it is self evident otherwise???

3. thats too much work right now...you need to convert the annuity values to mortality in some form and the rest would be easy...