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Doris Said:

Math Help, problem below Please give Explanation and Answer?

We Answered:

First see how many thousands there are in a million.
1,000,000 / 1000 = 1,000
Now multiply $13.22 x 1000 = $13,220

Marc Said:

need explanation on probability theory>>>>?

We Answered:

they look at more data than merely "he will die" or "he won't die". Age and health come into play, along with many other factors.

Kay Said:

Life Insurance Statistics Help, PLEASE?

We Answered:

I'll get you started.

In the first year, the company receives the $250 premium (at the beginning of the year, BTW) and one of two things happens: either the insured dies (prob 0.00185) or doesn't (prob 0.99815). If he dies, the company pays $100K. So the profit in the first year is
$250 - 0.00185x$100K = $250 - $185 = $65.

In the second year, again the company receives $250 and the insured dies or doesn't. The profit in the second year is
$250 - 0.00189x$100K = $250 - $189 = $61. And so on.

BUT if the insured doesn't survive the year, he doesn't go on to the next year--he stops paying the premium.

So when you calculate the mean profit, you have to reduce it in the later years by the probability that the insured has already died.

For example, the profit contribution in the second year is really only $61 x 0.99815.

Virginia Said:

net premium valuation?

We Answered:

o come on

Manuel Said:

Life Insurance Scenario?

We Answered:

You should have approached the office itself or a financial consultant or the agent himself.
The clear answer to you is:
Your policy is for 25 years and premium for 16 years you are seeking a benefit in the 5th year. So the value of your policy is 5/16 if not 5/25.
This value is also payable after 25 years if you decide to stop the premium now. Your loan is nothing but the value of 1.25 lakhs payable after 25 years demanded in 5th year. Again it is 5/25. Bonus will be added after 5 years of payment.
Suggestions:
1) continue the policy for the sake of risk coverage and long term returns.
2) If you look for short term gains, go for Unit linked policies
3) Even if you want to surrender, try after more than half the duration or 3/4th of the term and see the difference.