Question

For a single premium discrete 15-year term insurance of $100,000 on a person age (45), you...

  1. For a single premium discrete 15-year term insurance of $100,000 on a person age (45), you are given:

    i) i=5%
    ii) Mortality follows DeMoivre with w=100.

After 5 years, it is discovered that the insurance should have been calculated using w=120. At this time, a one-time premium adjustment is made only for the remaining 10 years of this insurance.

Calculate the one-time adjustment.

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