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Old 01-26-2019, 11:20 PM
SweepingRocks SweepingRocks is offline
Join Date: Jun 2017
College: Bentley University (Class of 2019ish)
Posts: 155
Default Term Insurance Question

So that's a link to a question I'm stuck on. I tried using first principles instead of using the shortcut, since the shortcut isn't that intuitive for me. I can understand and calculate the pure endowment part, but for the term insurance this is what I did:

tP45=1-(t/58) and to find the force of mortality between 45 and 65, I took 20P45=.65517=e^(20ux). Then solved for ux as .02114. Then I integrated between 0 and 20 for (1-(t/58))*.02114*(e^.06t), or tP45*ux*v^t.

I ended up with an answer of .28037 for the 20 term insurance, while the solution has .200806. Can someone provide clarity on what I did wrong or why my approach may not work? Thank you in advance!

Former Disney World Cast Member, currently no idea what I'm doing

"I think you should refrain from quoting yourself. It sounds pompous." - SweepingRocks
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