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Explain why the 30-year old in the first year of coverage has a lower mortality expectation than a 30-year old in the 6th year of coverage.

Explain why the 30-year old in the first year of coverage has a lower mortality expectation than a 30-year old in the 6th year of coverage.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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  1. Explain why the 30-year old in the first year of coverage has a lower mortality expectation than a 30-year old in the 6th year of coverage.
PART II: LIFE INSURANCE COMPANY OPERATIONS 446 Table 15-1 Year of Insurance 6 and Attained Age at 4 above Age 3 Issue 1 0.93 0.97 1.01 0.88 30 0.82 25 0.71 0.96 1.06 1.00 0.82 0.89 31 26 0.72 1.05 0.99 1.12 0.83 0.92 32 27 0.73 1.11 1.21 0.84 0.93 1.03 33 28 0.74 1.08 1.20 1.32 0.84 0.97 34 29 0.74 1.16 1.31 1.44 35 0.86 1.02 30 0.74 Select and ultimate tables are used for purposes of analysis and comparison Society of Actuaries and the American Acad.
Transcribed Image Text:PART II: LIFE INSURANCE COMPANY OPERATIONS 446 Table 15-1 Year of Insurance 6 and Attained Age at 4 above Age 3 Issue 1 0.93 0.97 1.01 0.88 30 0.82 25 0.71 0.96 1.06 1.00 0.82 0.89 31 26 0.72 1.05 0.99 1.12 0.83 0.92 32 27 0.73 1.11 1.21 0.84 0.93 1.03 33 28 0.74 1.08 1.20 1.32 0.84 0.97 34 29 0.74 1.16 1.31 1.44 35 0.86 1.02 30 0.74 Select and ultimate tables are used for purposes of analysis and comparison Society of Actuaries and the American Acad.
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