An insurance company will pay the face value of a term life insurance policy if the...

An insurance company will pay the face value of a term life insurance policy if the insured person dies during the term of the policy. For how much should an insurance company sell a 10-year term policy with a face value of $40,000 to a 30-year-old man for the company to make a profit? The probability of a 30-year-old man living to age 40 is 0.97. Explain your answer. Remember that the customer pays for the insurance before the policy becomes effective.

Expert Solution

jeff jeffy answered 2 years ago

An insurance company considers the present value of a 10-year term life insurance policy to be...

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Suppose a life insurance company sells a $290,000 a year term life insurance policy to a...

Suppose a life insurance company sells a $290,000 a year term life insurance policy to a 20-year-old female for $200. The probability that the female survives the year is 0.999634. compare and interpret the expected value of this policy to the insurance company. the expected value is $___ (round to two decimal places as needed)

suppose a life insurance company sells a $240,000 one year term life insurance policy to a...

suppose a life insurance company sells a $240,000 one year term life insurance policy to a 19 year old female for $270. the probability that the female survives the year is .999522. compute and interpret the expected value if this policy to the insurance company. the expected value is $______

Maxwell Simmons has a life insurance policy with a face value of $250,000 and a cash...

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A life insurance company sells a $150,000 one year term life insurance policy to a 21-year...

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Prudent policy life insurance co. offers a 10 year term life insurance policy with a $250000...

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Maybe you have considered buying a term life insurance policy. The expected value of any term...

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A life insurance company sells a $250,000 1-year term life insurance policy to a 20-year old...

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Suppose a life insurance company sells a $230 comma 230,000 one-year term life insurance policy to...

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