I'm struggling to work out the claim expense for this question. I believe that you're multiplying (aq)[x] (for death) by the bid-offer X2 (as benefit is 200% of the bid value)... However, I'm not sure how the maturity value is calculated and hence, the overall claim expense for both Yr 1 & Yr 2... Help!!
If the benefit is 200% of the bid value. That means 100% taken from unit fund & 100%(of unit fund) from non-unit fund. And for expenses absolute amount is given already.
I'm repeating this module this time around and still not working out where the claim expense from the non-unit fund is being calculated from...
here we just need to find expected expenses. so for Expected claim expenses. .001201*90=0.108(P(death within 1st year)*Death claim expense) .001557*90+.998443*55=55.054(P(death within 2st year given survived first)*Death claim expense+P(survived 2nd given survived 1st))
