Question A

i = 5.5% A = 0.0002 C = 1.125

tpx

where,

&

Question B
B = 0.0000030

Question C
1.
20p80 =

(
g 0.999975

)
cx(ct-1) 118027.1712 Answer 20p80
20P80 0.049281

s 0.996008

0.049281

2.

3.3|5.8 q 80.2 = 3.3p80.2 9.1p80.2

3.3p80.2

s 0.999340
9.1p80.2

g 0.999975

cx(ct-1) 6013.966576

20P80 0.857410

s 0.998182

g 0.999975

cx(ct-1) 24316.06876 Answer 3.3|5.8 q 80.2

20P80 0.537319

0.320091 See Appendix I

3.

= p80 + 2p80 +3p80 + ..+ 59p80 Answer

9.609456 See Appendix II

4. A80 = kp80q80+k = v q80 +v p80 A81 A81 = kp81q81+k = v q81 +v p81 A82 A140 = v q140 +v p140 A141 = 0 Answer A80 5. A80:20 = A80:20 + A80:20 A80:20 =
kP80

0.593367 See Appendix III

q80+k +v20 20p80 Answer A80:20 0.595486 See Appendix IV

Question D
e80 = e80 + = 80 = A80 where = 80:20 = 80:20 + V20 20p80 See Appendix VI i. Using step size of 1 year e80 80 80:20 10.106349 0.609559 0.611250 ii. Using step size of 0.5 year 10.106349 0.609559 0.611250 dt ( ) See Appendix V

Question E
20p80

is the probability of a person age 80 survives to at least age 100 (or at least 20 years).

3.3|5.8

q 80.2 is the probability that a person age 80 dies between 83.3 and 89.1.

The value for A80:20 is slightly higher than A80 because it has a survival benefit if the person of age 80 survived beyond the age of 100. e80 = 10.106349 > e80 = 9.609456, complete expectation of life has a higher value as compared to curtate future lifetime of 80 because if the person dies under the curtate future lifetime, say 85.3, his future lifetime will be calculated to the nearest integer ages, in this case, 85; whereas for expected complete it will be calculated at the age of 85.3 itself. 80 = 0.609559 > A80 = 0.593367, has a bigger value as compared to A because the benefit is payable immediately upon death whereas As benefit is payable the end of year of death. The reason why 80:20 = 0.611250 > A80:20 = 0.595486 is the same as above. (80 > A80 )

Question F
lx = 1 000 000 and px are calculated using Makehams px = hence, lx px = lx+1

l81 = l80 x p80 l82 = l81 x p81 .. l100 = l99xp99 See Appendix VII

Question G
i) Uniform Distribution of Death (UDD)
3.3|5.8q80.2
( ) ( )

l83.5 = 0.5 l83 + 0.5 l84 = l89.5 = 0.7 l89 + 0.3 l90 = l80.2 = 0.8 l80 + 0.2 l81 =
Answer 0.319830

850598.5 533250 992240.8

e80 = e80 +0.5

Answer 10.109458 Answer: 0.609539 Answer: 0.594826 See Appendix VII

80 = A80 x ,where
80:20 = 80:20 + v20 20p80

ii) Constant Force of Mortality

3.3|5.8q80.2 = 3.3p80.2 (1- 5.8p83.5)

= 0.8p80.2 x 2p83 x 0.5p83 (1- 0.5p83.5 x 5p84 x 0.3p89) = (p80)0.8 2p83 (p83)0.5 (1-(p83)0.5 5p84 (p89)0.3) = ( )0.8 x x ( )0.5 x (1- ( )0.5 x x( )0.3)
Answer : 0.320250
See Appendix VIII e80 = where tpx = (px)t e80 = ( )t dx Assuming Constant Force of Mortality between integer ages. using Repeated Simpsons Rule with Step Size = 1

Answer: 9.769693 See Appendix XI

Question H
1. The calculation in part (c) and (d) uses Makehams Law where force of mortality is a fixed term which is not age related. The force of mortality () gives a better calculation for accidental deaths. This is because force of mortality is measured on unit of time. The calculation in part (g) uses the values of lx where the lives are all aggregated together. 2.
tpx

The tpx used in both part (d) and (g) are different. The tpx in part (g) is the probability depends only on the age of x; whereas in part (d) the tpx uses Makehams Law where the constants are fixed throughout the calculation. Thus, it can be evaluated numerically because the integration of force of moratality. Hence, the tpx gives more accurate calculation in using Makehams Law rather than using Life Table/Aggregate Survival model.

3. e80 80
80:20
3.3|5.8q80.2

Repeated Simpsons Rule

10.106349 0.609559 0.611250

UDD
10.109458 0.609539 0.594826 0.319830

Constant Force of Mortality

9.769693

0.320250

Referring to the results calculated using different methods in calculating given equation, we can see that e80, 80, 80:20 has a higher value (though the difference is rather small) when calculating using Makehams Law as compared to using UDD. The reason is because the usage of force of mortality gives more accuracy but calculating UDD, both 80 and 80:20 are being multiply with ; is a force of interest which being compounded continuously- to calculate the approximation of both 80 and 80:20 using A20 and A80:20 because of the information available for part (g) was only life table.

4.

3.3|5.8q80.2

When calculating the above equation, constant force of mortality gives a bigger value than UDD because of the approximation of .