SOA Exam FAM Sample Question 3.12
Study guide: Exam FAM
X and Y are both age 61. X has just purchased a whole life insurance policy. Y purchased a whole life insurance policy one year ago.
Both X and Y are subject to the following 3-year select and ultimate table:
x |
\ell_{[x]} |
\ell_{[x]+1} |
\ell_{[x]+2} |
\ell_{x+3} |
x+3 |
|---|---|---|---|---|---|
| 60 | 10,000 | 9,600 | 8,640 | 7,771 | 63 |
| 61 | 8,654 | 8,135 | 6,996 | 5,737 | 64 |
| 62 | 7,119 | 6,549 | 5,501 | 4,016 | 65 |
| 63 | 5,760 | 4,954 | 3,765 | 2,410 | 66 |
The force of mortality is constant over each year of age.
Calculate the difference in the probability of survival to age 64.5 between X and Y.
[Question 2 on the Spring 2017 exam]
- A) 0.035
- B) 0.045
- C) 0.055
- D) 0.065
- E) 0.075
Answer this question and see the worked solution