Insurance: An insurance company sells a 1-year term life insurance policy to an 80-year-old woman. The woman pays a premium of $3300. If she dies within 1 year, the company will pay $54,000 to her beneficiary. According to the U.S. Centers for Disease Control and Prevention, the probability that an 80-year-old woman will be alive 1 year later is 0.9398. Let X be the profit made by the insurance company.Part: 0 / 20 of 2 Parts CompletePart 1 of 2(a) Find the probability distribution.The probability distribution is

The probability that a 22-year-old female in the U.S. will die within one year is approximately 0.00044. If an insurance company sells a one-year, $30,000 life insurance policy to such a person for $135, what is the company's expectation? (Round your answer to the nearest dollar.)$

The probability is .99 that a 30-year-old man will survive one year. An insurance company offers to sell a man P150,000.00 one-year term life insurance policy at a premium of P2,200.00. What is the company’s expected gain?

Suppose the policy does not have any death benefit, which means if the insured dies thepolicy stops making payments (i.e., ignore Column 3 and 4). Assume the policyholder doesnot surrender the policy before death. (10’)(a) Calculate the internal rate of return (IRR) of this policy for buyers of 65 (the buyer isright before his 65th birthday). Assume the first payment starts one year later. Thatis, the buyer can receive 5800 × 12 at the end of every year. Note: the IRR is such thatthe PV of premium equals the PV of expected benefits. (8’)(b) Suppose there is another financial instrument (e.g., a bond) that can achieve the samelevel of IRR as you calculate in part (a). What is the benefit of the annuity plan,compared with the alternative instrument? (2’)2. Death benefit and IRR. (20’)The death benefit we consider is simpler than the death benefit from the actual plan (ifyou read the document through the link). Assume that if the insured dies within the5

Consider an insurance company that offers a standard contract with the premium r=$300 and payout q=$500 to anyone who will purchase it. Alice has healthy-state income I_H=$700 and sick-state income I_S=$0. He has probability of illness p=0.6.Answer the following questions.If Alice purchases the insurance and stays healthy, her income will be $[C].If Alice purchases the insurance and ends up getting sick, her final income will be $[D].For Alice, the standard insurance contract is [E] (choose either fair or unfair) and [F] (choose either full or partial).

The amount received after giving up a whole life type of insurance policy is called the: