SOA Exam FAM Sample Question 4.5
Study guide: Exam FAM
For a 30-year term life insurance of 100,000 on (45), you are given:
(i) The death benefit is payable at the moment of death
(ii) Mortality follows the Standard Ultimate Life Table
(iii) \delta = 0.05
(iv) Deaths are uniformly distributed over each year of age
Calculate the 95th percentile of the present value of benefits random variable for this insurance.
[A modified version of Question 11 on the Fall 2017 exam]
- A) 30,200
- B) 31,200
- C) 35,200
- D) 36,200
- E) 37,200
Answer this question and see the worked solution