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q27
You are given the following situations:
- A person aged 45 purchases a 10-year deferred, 20-year term insurance policy, calculated using the 2017 CSO table and i = 4.5%, with death benefit RI
- The same person in (I) purchases a 30-year term insurance policy, calculated using the 2017 CSO table and i = 4.5%, with death benefit RII
- A person aged 30 purchases a 30-year endowment insurance policy, calculated using the 2017 CSO table and i = 4.5%, with face amount R III
- The same person in (III) purchases a 30-year term insurance policy, calculated using the 2017 CSO table and i = 4.5%, with death benefit R IV
Assuming the net single premium(NSP) for all of the policies given above is $200,000, which of the following statements is true?
- A.
RI < RII and RIII > RIV
- B.
RI < RII and RIII < RIV
- C.
RI > RII and RIII > RIV
- D.
RI > RII and RIII < RIV
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