For a special fully discrete whole life insurance on (40), you are given:

(i) The death benefit is 50,000 in the first 20 years and 100,000 thereafter

(ii) Level net premiums of 875 are payable for 20 years

(iii) Mortality follows the Standard Ultimate Life Table

(iv) [math]\quad i=0.05[/math]

Calculate [math]{ }_{10} V[/math], the net premium policy value at the end of year 10 for this insurance.

• 11,090
• 11,120
• 11,150
• 11,180
• 11,210

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

Answer: C

[[math]] \begin{aligned} { }_{10} V & =50,000\left(A_{50}+{ }_{10} E_{50} A_{60}\right)-(875)\left[\ddot{a}_{50: 10}\right] \\ & =50,000[0.18931+(0.60182)(0.29028)]-875[8.0550] \\ & =11,152 \end{aligned} [[/math]]

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