FIN208 Financial Markets Services

Financial Markets ServicesTU Board 2025

In Pokhara, there are 10,000 policy holder alive at the beginning of age 40. Out of them, 20 are expected to die at the age of 40. Each policy holder has a Rs 100,000 life insurance policy and cost…

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In Pokhara, there are 10,000 policy holder alive at the beginning of age 40. Out of them, 20 are expected to die at the age of 40. Each policy holder has a Rs 100,000 life insurance policy and cost of money is 10 percent. a. Calculate expected claim. b. Calculate present value of expected claim. c. Calculate estimated net premium per policy.

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