It must be super easy for you but I don't get it.
Question is
Karen, age 35, purchases a 30-year deferred whole life annuity-due with annual payments of 10,000 beginning at age 65. Premiums are payable for 30 years. Level benefit premiums are payable each year. If Karen dies during thr deferral period, premiums are refunded with 6% interest.
i = 0.06
Answer say P = 10,000 s"20|/s"30| and I don't get this part.
(sorry I don't know How can I write the notation. s"20| means accumuation with only interest for 20yr. )
again, I don't get this explanation.
If premiums are refunded with interest upon death, then they accumulate with interest only, not survivorship, since ultimately only the survivors pay the premium.
Please help me!
Question is
Karen, age 35, purchases a 30-year deferred whole life annuity-due with annual payments of 10,000 beginning at age 65. Premiums are payable for 30 years. Level benefit premiums are payable each year. If Karen dies during thr deferral period, premiums are refunded with 6% interest.
i = 0.06
Answer say P = 10,000 s"20|/s"30| and I don't get this part.
(sorry I don't know How can I write the notation. s"20| means accumuation with only interest for 20yr. )
again, I don't get this explanation.
If premiums are refunded with interest upon death, then they accumulate with interest only, not survivorship, since ultimately only the survivors pay the premium.
Please help me!
Deferred annuity with refund of reserve
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