Q12 CM1A April 2022

Discussion in 'CM1' started by DK2, Apr 3, 2023.

  1. DK2

    DK2 Made first post

    For policy B benefit in part (ii), why is the Sum Assured for the survival benefit 60,500? shouldn't it just be 50,000?
     
  2. Joe Hook

    Joe Hook ActEd Tutor Staff Member

    "The company sets k so that the maturity benefit will be the same under both products". Under A the maturity benefit is 50,000 + 1050*10 = 60,500.

    Hence it will be the same under B.
     
    DK2 likes this.

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