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Question:
A 10-year deferred life assurance policy with variable benefits is issued to a select life aged 36. The policy provides the following benefits:-
Premiums are paid annually in advance throughout the life of the policy.
Calculate:-
(a) the annual premium under this policy; (b) the prospective reserve 7 years after the policy is issued; (c) the retrospective reserve policy value 7 years after the policy is issued.
Basis: AM92 Select Mortality, 6% p.a interest
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