Suppose that Mr. Campbell (40 years old) wants to purchase a single premium two year term life insurance policy, which requires him to pay one premium at the initiation and nothing later.
Assume that the probability of dying at age 40 is 0.00302, while the probability of dying at age 41 is 0.00329.
Also assume that one year interest rate is equal to 10 percent (0.1) and the policy amount is 100,000.
How much should the insurance company charge Mr. Campbell
(ignoring expenses and profit loading) to cover the expected claim costs?
No More Worries!
Our orders are delivered strictly on time without delay
Paper Formatting
- Double or single-spaced
- 1-inch margin
- 12 Font Arial or Times New Roman
- 300 words per page
No Lateness!
Our orders are delivered strictly on time without delay
Our Guarantees
- Free Unlimited revisions
- Guaranteed Privacy
- Money Return guarantee
- Plagiarism Free Writing
Life insurance policy
Satisfaction Guaranteed
- Research Paper Writing
- Essay Writing
- Dissertation Writing
- Thesis Writing
Why Choose Us
- Money Return guarantee
- Guaranteed Privacy
- Written by Professionals
- Paper Written from Scratch
- Timely Deliveries
- Free Amendments