Question

If sum assured is Rs.1,50,000/- and if number of premiums actually paid are 7 and number of premiums actually payable are 10, what is the reduced sum assured?

a.

Rs.1,50,000

b.

Rs.1,05,000

c.

Rs.50,000

d.

Rs.1,00,000

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (b).Rs.1,05,000 Explanation:‘t’ is number of premiums paid and ‘n’ is the number of premiums payable. t= 7; n= 10, then the reduced sum assured is Rs. 1,05,000. i.e. Rs.1,50,000 x 7/10 = Rs.1,05,000/-

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Q. If sum assured is Rs.1,50,000/- and if number of premiums actually paid are 7 and number of premiums actually payable are 10, what is the reduced sum assured?
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