Reference no: EM133057742

Question - Suppose you are an actuarial consultant hired to determine life insurance premiums in the fictional country of Neverland. Owing to continuing warfare, the mortality rate in the country is extremely high. For all of the following calculations use the mortality table given below, assume the relevant discount rate is 5%.

Mortality Table (Males)
Age	Number Alive	Number Dying	Deaths per 1000
28	100,000	300	3.00
29	99,700	320	3.21
30	99,380	340	3.42
31	99,040	360	3.63
32	98,680	380	3.85
33	98,300	400	4.07
34	97,900	420	4.29
35	97,480	440	4.51

Present Value of $1 at 5%

Year	Factor
1	0.9524
2	0.9070
3	0.8638
4	0.8227

Required -

a) Calculate the premium per $1,000 of coverage on a one-year term policy for a 30-year old male. Show all working.

b) Calculate the net single premium per $1,000 of coverage on a three-year term policy for a 30-year old male. Show all working.

c) Calculate the net level premium per $1,000 of coverage on a three-year term policy for a 30-year old male. Show all working.