Actuarial Mathematics
Text size: larger | smaller

Gross Reserving

Worked Example

Calculate the premium for a 25 year term assurance of 100,000 payable at the end of the year of death issued to a 40 year old assuming interest of 4.0% p.a. and AM92 mortality. Premiums are payable annually in advance. Expenses are 500 initially and 0.5% of each premium payment. Given the premium calculate the prospective reserve at the end of year 10 of the policy? Calculate the retrospective reserve at the end of year 11 of the policy?

Bookmarking tools: