If a 40-Year-Old Buys a $1500 Life Insurance Policy at a Cost

question 23

Short Answer

If a 40-year-old buys a $1500 life insurance policy at a cost of $50 and has a probability of 0.992 of
living to age 41, find the expectation of the policy until the person reaches 41.

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Definitions:

Federal Liberty

A concept related to the freedoms and rights guaranteed to individuals by a federal government, often found in the context of constitutional discussions.

Civil Liberty

The freedom of citizens to exercise traditional rights such as freedom of speech, assembly, and religion without governmental interference or repression.

John Winthrop

A key figure in the early history of the Massachusetts Bay Colony, serving as its governor multiple times in the early 17th century; remembered for his vision of the colony as a "city upon a hill."

Pequot War

An armed conflict in 1637 that led to the destruction of one of New England’s most powerful Indian groups.