Reference no: EM131880117

An insurance company provides the following benefits to three different policyholders, each aged 45. (A) €100,000 if the life insured dies before age 65, with benefit payable at the end of the month in which death occurs. (B) €75,000 with benefit payable at the end of the year in which death occurs or when the person turns 70, whichever occurs first. (C) €50,000 if the life insured survives to age 60 with benefit payable when the life turns 60. For each of the benefits described above, write down the name of the type of benefit and the appropriate actuarial symbol for that benefit. Assuming an effective interest rate of 5% per annum and using ultimate mortality from Table 1, calculate the expected present value of benefit (B).