An insurer issues a deferred annuity with a single premium

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An insurer issues a deferred annuity with a single premium to (r). The annuity is payable continuously at a level rate of $50000 per year after the 20-year deferred period, if the policyholder survives. On death during the deferred period, the single premium is returned at the time of death with interest at rate i per year effective.

(a) Write down an equation for the prospective net premium policy value (i) during the deferred period and (ii) after the deferred period, using standard actuarial functions. Assume an interest rate i per year effective, the same of as the accumulation rate for the return of premium benefit.

(b) Repeat(a) for the retrospective net premium policy value. equal

Reference no: EM131442379

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