Question

And
insurance company sales a one year term life insurance policy to an
80-year-old woman. The woman pays a premium of $1000. If she dies
within one year the company will pay $20,000 to her beneficiary.
According to the US centers for disease control and prevention the
probability that a 80-year-old woman will be a live one year later
is 0.9516. But X be the profit made by the insurance company. Found
the probability distribution in the ass but the value of the
profit

Answer #1

A 20-year-old woman takes out a $12,000 one-year life insurance
policy that costs $110. Mortality tables indicate that the
probability that a 20-year-old women will die within a year is
0.006. (Note: the policy is for one year) Fill in the values for a
probability model for the company’s profit on a 20-year-old woman’s
policy.
Outcome x P(X=x)
She lives the whole year
She dies within the year 0.006

A $200,000 life insurance term policy costs $150 for 5 years of
coverage for a 30 year old male. If the male dies during those 5
years, the insurance company pays their family $200,000. If he
survives those 5 years, the insurance company will have collected
the $150 premium. The insurance company knows a 30 year old has a
0.000176 probability of dying over 5 years. What is the expected
profit for the insurance company on this policy?

1.A man purchased a $21,000, 1-year term-life insurance policy
for $350. Assuming that the probability that he will live for
another year is 0.985, find the company's expected net gain.
2.A man wishes to purchase a life insurance policy that will pay
the beneficiary $20,000 in the event that the man's death occurs
during the next year. Using life insurance tables, he determines
that the probability that he will live another year is 0.95. What
is the minimum amount that...

A 20-year-old female purchases a 1-year life insurance policy
worth $250,000. The insurance company determines that she will
survive the policy period with probability 0.9995.
(a) If the premium for the policy is $300, what is the expected
profit for the company?
(b) At what value should the insurance company set its premium
so its expected profit will be $250 per policy for 20-year-old
females?

a 30 -year old woman purchases a $200,000 term life insurance
policy for an annual payment of $460. Based on a period life table
for the U.S. Government, the probability that she will survive the
year is 0.999051. Find the expected value of the policy for the
insurance company. Round to two decimal places for currency
problems.

Suppose a life insurance company sells a $190,000 one-year
term life insurance policy to a 20-year-old female for $330. The
probability that the female survives the year is 0.999502. Compute
and interpret the expected value of this policy to the insurance
company.

6. A 35-year-old woman purchases a $100,000 term life insurance
policy for an annual payment of $360. Based on a period life table
for the U.S. government, the probability that she will survive the
year is 0.999057. Find the expected value of the policy for the
insurance company. need a step by step description via
excel

A customer buys a $250,000 life insurance policy with an annual
premium of $600. Her probability of dying during the year is 0.002.
If she dies, the insurance company will have to give her
beneficiary $250,000.
Calculate the insurance company’s expected value for this
policy. And what does the expected value represent?

A man wishes to purchase a life insurance policy that will pay
the beneficiary $30,000 in the event that the man's death occurs
during the next year. Using life insurance tables, he determines
that the probability that he will live another year is 0.92. What
is the minimum amount that he can expect to pay for his premium?
Hint: The minimum premium occurs when the
insurance company's expected profit is zero.

An insurance company sells a $12,000, five-year term life
insurance policy to an individual for $640. Find the expected
return for the company if the probability the individual will live
for the next five years is 0.98. (Round your answer to the nearest
cent.)

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