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(Solved): Exercise 7.1 For a whole life insurance issued to (40), you are given: (i) The death benefit, which ...



Exercise 7.1 For a whole life insurance issued to (40), you are given:

(i) The death benefit, which is payable at the end of the year of death, is $50,000 in the first 20 years, and $100,000 thereafter.

(ii) Level annual premiums are payable for 20 years or until earlier death.

(iii) The mortality basis for policy values is the Standard Ultimate Survival Model.

(iv) The interest basis for policy values is 5% per year.

Calculate the net premium policy value, 10V.



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