SOA Exam FAM Sample Question 4.17
Study guide: Exam FAM
For a special whole life policy on (48), you are given:
(i) The policy pays 5000 if the insured's death is before the median curtate future lifetime at issue and 10,000 if death is after the median curtate future lifetime at issue
(ii) Mortality follows the Standard Ultimate Life Table
(iii) Death benefits are paid at the end of the year of death
(iv) i = 0.05
Calculate the actuarial present value of benefits for this policy.
[A modified version of Question 6 on the Fall 2016 exam]
- A) 1130
- B) 1160
- C) 1190
- D) 1220
- E) 1250
Answer this question and see the worked solution