Hi, For constant force of mortality assumption, is it necessary to work out the force of mortality from px instead of directly using (px)^(t-s)? Thank you
Hi, For the same paper Q11(ii), why are we not dividing the pure endowment term by (1+b)? Isn't the final maturity benefit = sum assured * (1+b)^9?
Regarding constant force of mortality questions, you should be able to calculate your probabilities using (px)^(t-s) and earn the marks without any calculation of mu. Where bonuses vest at the end of the policy year then the survival / maturity benefit includes the final bonus so 10 lots of bonuses are applied to the survival benefit. Note that the question explicitly tells you that the death benefit does not include the bonus from the year. If it helps I tend to think of the end of the year timeline with bonuses vested at the end of the year as: 1. Death benefit paid (if any) 2. Bonus applied 3. Maturity benefit paid (if any) Joe
