Life insurance money A life insurance company sells a term insurance policy to a 21-year-old male that pays $100,000 if the insured die within the following 5 years. The probability that a randomly favored male will certainly die each year can be uncovered in mortality tables. The firm collects a premium the $250 every year as payment for the insurance. The quantity Y the the firm earns top top this policy is $250 per year, less the $100,000 that it should pay if the insured dies. Below is a partly completed table that shows information about risk the mortality and the worths of Y = profit earned through the company:


(a) describe why the agency suffers a lose of $98,750 on together a policy if a client dies at age 25.

You are watching: A life insurance company sells a term insurance policy to a 21-year-old male

(b) uncover the missing probability. Show your work.

(c) calculation the average mY. Interpret this value in context.


jan 25 2021 07:32 pm

1 authorized Answer


Priyanka reply on January 27, 2021
5 Ratings, (11 Votes)
1) If a customer dies at period 25, he has actually paid to the firm premium that $250 because that 5 years each which is a complete of 250*5 = $1250

The company pays $100,000 on his death. So...
carry out you need response to a question various from the above? Ask her question!
aid us do our solutions far better
(Rate this solution on a range of 1-5 below)
We desire to correct this solution. phone call us much more


(Hide this ar if you desire to rate later)

was the final answer the the inquiry wrong?

to be the solution measures not thorough enough?

was the language and also grammar one issue?

does the concern reference dorn data/report or numbers?

say thanks to You
We appreciate your Feedback

continue to be Solved :)

This article will auto near in 5 seconds

Didn"t discover yours?

questioning a brand-new question

Get plagiarism-free equipment within 48 hours

testimonial Please

next ahead

Related Questions

Plagiarism Checker

Submit your documents and get complimentary Plagiarism report

complimentary Plagiarism Checker

Stuck through a Question?

Your systems is simply a click away! acquire it Now

Try free for 7 job
Create one Account and Get the Solution
Log into your currently account
have an account already? Click here to Login

By producing an account, friend agree come our state & conditions

No Account Yet? Click below to sign Up
sign in v Facebook

us don"t post anything without her permission


Looking because that Something Else? asking a similar Question

Ask now
Lets Start

Couldn"t uncover What girlfriend Were in search of ?

ask Your inquiry Now!

Get it addressed from our top specialists within 48hrs!


Stuck with a Question?

Get the complete solution best now.

See more: Fangs For The Fantasy: Grimm Season 1 Episode 10 : Organ Grinder

View finish Solution
187 wolf Road, Albany new York, 12205, USA
Level 6/140 Creek Street, Brisbane, QLD 4000, Australia
Reach us on:

© 2007-2021 Transweb global Inc. All civil liberties reserved.
questions & answer
sign upSign In