• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

CT5 2008 April Q8(ii)(b)

O

omurice

Active Member
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
 
You must log in or register to reply here.
Back
Top