Pure Endowment Policy Calculation
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Pure Endowment Policy Calculation

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@FinerPennywhistle

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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?

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

    What is the characteristic feature of a deferred annuity?

    <p>Payments are made when the individual attains a certain age</p> Signup and view all the answers

    When is a Life Annuity Due paid?

    <p>At the beginning of each year</p> Signup and view all the answers

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

    <p>The age at which payments begin</p> Signup and view all the answers

    What does a Term Life Annuity guarantee?

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

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

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

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

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

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

    <p>The policyholder's age on first payment</p> Signup and view all the answers

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

    <p>8</p> Signup and view all the answers

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