Question

7.31. A whole life insurance issued to (25) pays a unit benefit at the end of the year of death. Premiums are payable annually to age 65. The benefit premium for the first 10 years is $P_{25}$ followed by an increased level annual benefit premium for the next 30 years. Use your Illustrative Life Table and $i = 0.06$ to find the following. a. The annual benefit premium payable at ages 35 through 64. b. The tenth-year benefit reserve. c. At the end of 10 years the policyholder has the option to continue with the benefit premium $P_{25}$ until age 65 in return for reducing the death benefit to B for death after age 35. Calculate B. d. If the option in (c) is selected, calculate the twentieth-year benefit reserve.

          7.31. A whole life insurance issued to (25) pays a unit benefit at the end of the year of death. Premiums are payable annually to age 65. The benefit premium for the first 10 years is $P_{25}$ followed by an increased level annual benefit premium for the next 30 years. Use your Illustrative Life Table and $i = 0.06$ to find the following.
a. The annual benefit premium payable at ages 35 through 64.
b. The tenth-year benefit reserve.
c. At the end of 10 years the policyholder has the option to continue with the benefit premium $P_{25}$ until age 65 in return for reducing the death benefit to B for death after age 35. Calculate B.
d. If the option in (c) is selected, calculate the twentieth-year benefit reserve.

7.31. A whole life insurance issued to (25) pays a unit benefit at the end of the year of death. Premiums are payable annually to age 65. The benefit premium for the first 10 years is P25 followed by an increased level annual benefit premium for the next 30 years. Use your Illustrative Life Table and i = 0.06 to find the following.
a. The annual benefit premium payable at ages 35 through 64.
b. The tenth-year benefit reserve.
c. At the end of 10 years the policyholder has the option to continue with the benefit premium P25 until age 65 in return for reducing the death benefit to B for death after age 35. Calculate B.
d. If the option in (c) is selected, calculate the twentieth-year benefit reserve.

Added by Santiago D.

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