nother year is 0.99786 based on data from the national registry agency. Calculate the insurance premium an insurance company would charge to break even on a 1 year $0.5million term-life insurance policy?
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Insurance underwriting relies heavily on statistics to determine the amount of insurance premium to charge. The probability that a 25-year-old female will live another year is 0.99786 based on data from the national registry agency. Calculate the insurance premium an insurance company would charge to break even on a 1 year $0.5million term-life insurance policy?
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- Suppose a life insurance company sells a $230,000 one-year term life insurance policy to a 24-year-old female for $240. The probability that the female survives the year is 0.999514. Compute and interpret the expected value of this policy to the insurance company. The expected value is $ (Round to two decimal places as needed.)Suppose a life insurance company sells a $250,000 one-year term life insurance policy to a 24-year-old female for $360. The probability that the female survives the year is 0.999477. Compute and interpret the expected value of this policy to the insurance company. The expected value is $ (Round to two decimal places as needed.) Which of the following interpretation of the expected value is correct? O A. The insurance company expects to make an average profit of $32.71 on every 24-year-old female it insures for 1 month. O B. The insurance company expects to make an average profit of $359.81 on every 24-year-old female it insures for 1 year. O C. The insurance company expects to make an average profit of $20.84 on every 24-year-old female it insures for 1 month. O D. The insurance company expects to make an average profit of $229.25 on every 24-year-old female it insures for 1 year.ii. If a life insurance company insures 50 females age 25 for $40,000, 10- year term policies, how much would they expect to pay out? Solve
- If a life insurance company insures 50 females age 25 for $40,000, 10- year term policies, how much would they expect to pay out?SolveCalculate the life insurance gross premium for an insurance company, XYZ Life, under the following assumptions. Please round your answer to the nearest dollar. 1-year term insurance for a 35-year-old female • The death benefit is $10,00O • The probability of death within one year given a female is 35 years old (q30) is 0.015 The interest rate is 1.5% • All deaths occur uniformly, hence for simplicity, price the product assuming all deaths happen at the middle of the year • XYZ Life is looking for a 25% loading based on the pure premium (i.e. PV of expected loss) (Hint: When loading Ap, expressed as a percentage, is based on pure premium, Gross premium = Pure premium × [1 + Ap]) Choose the correct answer from below. $166 $171 $149 $155 O $186You are the wage earner in a "typical family," with $28,000 gross annual income. Use the easy method to determine how much life insurance you should carry. (Do not round intermediate calculations.) Life insurance need
- choose three major insurance companies, obtain the premiums of life insurance policies for a 30 year old man with $300, 000 insurance coverage (death benefit). Compare the premium for term, whole or universal life insurance. Prepare a premium table and indicate which policy you consider and why?If Carissa has a $178,000 home Insured for $120,000, based on the 80 percent coinsurance provision, how much would the Insurance company pay for a claim of $12,000? Note: Do not round intermediate calculations. Round your answer to 2 decimal places.A 40 year old man in the United States has a 0.199% risk of dying during the next year. An insurance company charges a premium of $429 pays a $166,010 death benefit. What is the expected gain or loss to the man when for a life-insurance policy that purchasing the insurance policy? Hint: Calculate the expected loss of the premium if the man survives (always a negative value), then subtract the premium from the death benefit and calculate the expected gain to the beneficiarles if the man dies (always a positive value), and then add these two numbers to find the net result. A negative net result should be entered as a negative value In the box below. Note: Please avold rounding numbers in the middle of your calculations. However, round your final answer to two decimal places, before entering it in the box below. A negative final answer indicates an expected loss for purchasing the policy.
- A 25-year-old and a 50-year-old apply for 10-year term life insurance plans. Which person will have a higher premium and why?Suppose a company offers a standard insurance contract with a premium (r) of $1,000 and a payout (q) of $10,000. Suppose that Eleanor earns a healthy state income of $30,000, a sick state income of $20,000, and has a 5% chance of becoming ill. From this information, you can determine that the expected profit for the insurance company is likely: O positive O equal to zero O negativeAn insurance company is offering a new policy to its customers. Typically, the policy is bought by a parent or grandparent for a child at the child's birth. The details of the policy are as follows: The purchaser (say, the parent) makes the following six payments to the insurance company: $910 First birthday: Second birthday: $ 910 Third birthday: $ 1,010 Fourth birthday: $ 1,010 Fifth birthday: $ 1,110 $ 1,110 Sixth birthday: After the child's sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $420,000. If the relevant interest rate is 11 percent for the first six years and 7 percent for all subsequent years, what is the value of the policy at the child's 65th birthday? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) > Answer is complete but not entirely correct. Child's 65th birthday $ 367,778.00 X