Joey E40 is a president of Alpha enterprises Joey is insured a group life improvement policy that provides him with retirement income at the earlier of age 65 or after 30 years of service to receive this benefit however he must be employee of the company had his retirement date all premiums on the policy paid by Alpha Enterprises is the cost of the permit coverage for Joey tax will each year wire or why not yes because Joey is provided with retirement income
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Akash M.
Mateo is a 60-year-old Latino male in reasonably good health. He wants to take out a $50,000 term life insurance policy until he is 65. The policy will expire on his 65th birthday. If he dies before his 65th birthday, the insurance company will pay out $50,000 to his beneficiaries. The probability of death in a given year is provided below. x = age 60 61 62 63 64 P(death at this age) 0.01039 0.01453 0.01747 0.01984 0.02317 Mateo is applying to Big Rock Insurance Company for his term insurance policy. (a) What is the probability that Mateo will die in his 60th year? (Enter your answer to five decimal places.) Using this probability and the $50,000 death benefit, what is the expected cost (in dollars) to Big Rock Insurance? (Enter your answer as a positive number.) (b) Repeat part (a) for years 61, 62, 63, and 64. (Enter your answers as positive numbers.) Year | Expected Cost (in dollars) 61 | $ 62 | $ 63 | $ 64 | $ What would be the total expected cost (in dollars) to Big Rock Insurance over the years 60 through 64? (Enter your answer as a positive number.) (c) If Big Rock Insurance wants to make a profit of $700 above the expected total cost paid out for Mateo's death, how much should it charge (in dollars) for the policy? $ (d) If Big Rock Insurance Company charges $5,000 for the policy, how much profit (in dollars) does the company expect to make? $
Ivan K.
There is a 0.998 probability that a randomly selected 40-year-old male lives through the year. Fidelity life insurance company charges $165 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $100,000 as a death benefit. From the perspective of the 40-year-old male, what are the values corresponding to the two events of surviving the year and not surviving? If a 40-year-old male purchases the policy, what is his expected value? Can the insurance company expect to make a profit from many such policies?
Oluwadamilola A.
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