Calculate the annual net premium assuming UDD

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Reference no: EM132758200

Question - Consider a whole life insurance issued to (40) where the death benefit of $50,000 is paid at the moment of death. Premiums of P are paid at the beginning of every year.

Assume that mortality follows the standard ultimate life table and an annual effective interest rate of 5%.

1. Derive an expression for L₀n.

2. Calculate the annual net premium assuming UDD.

Reference no: EM132758200

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