On this picture, it says the objectives in the bottom of the picture and we want to find out the profit margin.
Sample Project Summary PURPOSE This project finds the profit margin for a 25-year endowment assurance policy issued to a 30 year old life by a particular life office. SUMMARY DATA We have been given the following policy details; Product: Endowment Sum Assured: 500,000 Age: 30 Premiums: monthly Surrender: Return of premiums paid to date ASSUMPTIONS \& PARAMETERS We have been provided with details of the assumptions used by the life office to price, reserve and profit test their policies; OBJECTIVES 1) Calculate the office premium assuming the office requires a profit margin of 3% on the pricing basis 2) Perform a full profit test for this policy assuming that reserves are set aside on the reserving basis at the end of each policy year 3) Having performed the full profit test recalculate the monthly premium to target a profit margin of 3% using the full profit test results. Sample Project Summary PURPOSE This project finds the profit margin for a 25-year endowment assurance policy issued to a 30 year old life by a particular life office. SUMMARY DATA We have been given the following policy details; Product: Endowment Sum Assured: 500,000 Age: 30 Premiums: monthly Surrender: Return of premiums paid to date ASSUMPTIONS \& PARAMETERS We have been provided with details of the assumptions used by the life office to price, reserve and profit test their policies; OBJECTIVES 1) Calculate the office premium assuming the office requires a profit margin of 3% on the pricing basis 2) Perform a full profit test for this policy assuming that reserves are set aside on the reserving basis at the end of each policy year 3) Having performed the full profit test recalculate the monthly premium to target a profit margin of 3% using the full profit test results
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