For a special 10-year deferred whole life annuity-due of 300 per year issued to (55), you are given:

(i) Annual premiums are payable for 10 years

(ii) If death occurs during the deferral period, all premiums paid are returned without interest at the end of the year of death

(iii) [math]\quad \ddot{a}_{55}=12.2758[/math]

(iv) [math]\quad \ddot{a}_{55: 10}=7.4575[/math]

(v) [math]\quad(I A)_{55: 10}^{1}=0.51213[/math]

Calculate the level net premium.

• 195
• 198
• 201
• 204
• 208

Copyright 2024. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.

Answer: E

Let [math]P[/math] be the premium per 1 of insurance.

[math]P \ddot{a}_{55: 10 \mid}=0.51213 P+v^{10}{ }_{10} p_{55} \ddot{a}_{65}[/math]

[math]\ddot{a}_{55}=\ddot{a}_{55: 10 \mid}+v^{10}{ }_{10} p_{55} \ddot{a}_{65} \Rightarrow v^{10}{ }_{10} p_{55} \ddot{a}_{65}=12.2758-7.4575=4.8183[/math]

[math]7.4575 P=0.51213 P+4.8183 \Rightarrow P=0.693742738[/math]

[math]300 P=208.12[/math]

Copyright 2024. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.