FIN208 Financial Markets Services

Financial Markets ServicesTU Board 2025

The following information are given retaining to the whole life policy: Amount of whole life policy: Rs 600,000 Annual mortality rate with current age of 40 year: 1.5% Life expectancy from now: 25…

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The following information are given retaining to the whole life policy:

Amount of whole life policy: Rs 600,000 Annual mortality rate with current age of 40 year: 1.5% Life expectancy from now: 25 years Cost of funds: 12%

Calculate the present value of benefits that the insurance company is expected to offer over the next 25 years.

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