For a whole life insurance of 1000 on 50 you are given The d

For a whole life insurance of 1000 on (50), you are given: The death benefit is payable at the end of the year of death. Mortality follows the Illustrative Life Table. i = 0.05 in the first year, and i = 0.06 in subsequent years. Calculate the actuarial present value of this insurance.

Solution

he started the insurance at the age 50. On the 4 year he died hence the total % of 1000 he gets for insurance

1000*(.05)*(.06)*3+ % of number of day he alive on 4th year which comes to mair about 260 if he spand half of year 4