12 Questions
What is the formula to calculate Net Single Premium (NSP) for a pure endowment policy?
$R.D_{(x+n)}/D_x$
In a whole life annuity, when does the annuity end?
If the insured dies
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?
$20,000
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.
What is the characteristic feature of a deferred annuity?
Payments are made when the individual attains a certain age
When is a Life Annuity Due paid?
At the beginning of each year
What is the main difference between a whole life annuity due and an ordinary whole life annuity?
The age at which payments begin
What does a Term Life Annuity guarantee?
Payments until death or until the end of a specific period, whichever occurs first
What is the formula to calculate the net single premium for a whole life annuity due?
$R.N_X/D_X
How is the net single premium calculated for an ordinary whole life annuity?
$R.N_(X+1)/D_X
In general, for whole life annuities, what is considered in calculating the net single premium?
The policyholder's age on first payment
How many types of deferred annuities are there when combined with all other types of life annuities mentioned?
8
Calculate the Net Single Premium (NSP) for a pure endowment policy given the necessary information. Understand how to compute the payout amount for a pure endowment policy at a certain age. Practice solving insurance policy calculation problems.
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