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12 Questions

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Pure Endowment Policy Calculation

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Questions and Answers

What is the formula to calculate Net Single Premium (NSP) for a pure endowment policy?

$R.D_{(x+n)}/D_x$ (correct)

$R \times 4768/6218$

$R \times 0.7668$

$R \times D_{50}/D_{40}$

In a whole life annuity, when does the annuity end?

If the insured is still living at the end of the specific period (n)

If the insured dies (correct)

At the beginning of each year

At the end of each year

For a person aged 18 who pays $15,336 for a 10-year pure endowment contract, what will be the face amount of insurance (R) received at age 28?

$25,000

$10,000

$20,000 (correct)

$5,000

What is the difference between Whole Life Annuity and Term Life Annuity?

Whole Life Annuity continues through the entire life of the insured, while Term Life Annuity is stopped at the end of a specific period. Signup and view all the answers

What is the characteristic feature of a deferred annuity?

Payments are made when the individual attains a certain age Signup and view all the answers

When is a Life Annuity Due paid?

At the beginning of each year Signup and view all the answers

What is the main difference between a whole life annuity due and an ordinary whole life annuity?

The age at which payments begin Signup and view all the answers

What does a Term Life Annuity guarantee?

Payments until death or until the end of a specific period, whichever occurs first Signup and view all the answers

What is the formula to calculate the net single premium for a whole life annuity due?

$R.N_X/D_X Signup and view all the answers

How is the net single premium calculated for an ordinary whole life annuity?

$R.N_(X+1)/D_X Signup and view all the answers

In general, for whole life annuities, what is considered in calculating the net single premium?

The policyholder's age on first payment Signup and view all the answers

How many types of deferred annuities are there when combined with all other types of life annuities mentioned?

8 Signup and view all the answers