2 Survival follows De Moivres Law with omega 100 and i 08

2. Survival follows De Moivre\'s Law with omega = 100 and i = .08. Find the variance of the issue date loss for a fully discrete whole life insurance of 1000 issued to (30) with annual benefit premiums. Note: Issue date loss is another term for Loss at Issue.

Solution

S(x)= 1- i/w

     

THis defines the survival function

the variance is w X i X 1000² / (w+i+1)X (w+i)²

Substitute the values and the value for the variance