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Question:
Company XYZ currently operates a General Insurance company and would like to start selling life insurance products. The intended market is composed of both financially sophisticated and unsophisticated persons. The company has approached you as an actuary to advise on the following issues:
(a) Explain the different life insurance products that XYZ could offer for sale.
(b) Show the risks that are inherent in the different types of products mentioned in part (a).
(c) Describe the four bases by which benefits under a contract may be determined.
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