An increasing whole life insurance pays k + 1 units at the end of policy year k

Question

An increasing whole life insurance pays k + 1 units at the end of policy year k + 1 if a life age 80 dies in policy year You are given: v = 0.925 The actuarial present value of this insurance is 4 if q80 = 0.1. Calculate the actuarial present value of this insurance if q8o = 0.2 and qx is unchanged for all other ag ZA is the present value random variable for a whole life insurance issued to (40) that pays 2 at the end of the year of death if death occurs within 10 years and 1 at the end of the year of death if death occurs after 10 years. ZB is the present value random variable for a whole life insurance issued to (40) that pays 1 at the end of the year of death if death occurs within 10 years and B at the end of the year of death if death occurs after 10 years. You are given E(Z^A) = E(Z^8). Write expressions for ZA and ZB in terms of vK+1. Express E(ZA) in terms of symbols for actuarial present values of life insurances. For parts (c) - (d) assume that mortality follo

Explanation / Answer

Here T = K+1 , n= 10 years and x= 40

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