ABC Life Insurance Company is offering a new product. The product is a two-year term insurance policy funded by a single premium at the start of the first year. Death claims are paid at the end of the year in which death occurs
A portion of the appropriate mortality table is shown below. The first number is age, the second is the number alive at the start of the year, and the last number is the number dying during the year.
39 9,693,539 14,928
40 9,678,611 15,970
Using a 5.5 percent interest rate, the present value of $1 one year from today is .9479, and the present value of $1 two years from today is .8985. Assuming a 5.5 percent interest rate, what is the net single premium for a $1,000 two-year term policy issued at age 39?
A) $1.49
B) $2.94
C) $5.67
D) $12.83
Answer: B
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On January 1, Tim's portfolio was valued at $432,098. During the year Tim received $10,563 in interest and $15,060 in dividends. He also sold stock at a net loss of $12,870 and used the proceeds to purchase another stock
Tim did not contribute any more funds nor withdraw any funds during the year. On December 31 of the same year, Tim's portfolio was valued at $398,189. What is the holding period return for the year? A) -5.3% B) -4.9% C) -2.1% D) -1.9%
As a user of information systems (IS), an employee has a responsibility to avoid ________
A) unauthorized hardware modifications B) changing system passwords frequently C) backup procedures D) applying software patches