CT5- April 2008 Question 11

In this question death benefit doesn't include any bonus ..what does it mean?

Similarly April 2009 Question 14 part 1

Says attaching bonus with death benefit.

Can anyone explain with simple and generic example what is main difference in both Two Question about benefits?

Regards
Sunil

 

2008 Q11
(i.e.the death benefit does not include any bonus relating to the policy year of death).
The bonus amount for the particular year in which death occurs will not added. So the death benefit is sum assured + bonus added in the years before death year.


2009 Q.14,i)
basic sum assured is 10000 and bonus is 4% simple each year. Adding bonus starts immediately.
Death in 1 st year, death benefit = 10400, death cost = \(10400 * q_{60}\)
Death in 2nd year, death benefit = 10800, death cost = \(10800 * q_{61}\)
In this sum examiner report made mistake. Question asked AM92 select and examiner report used AM92 ultimate