An insurance policy is taken out by an individual at age 40 and the following information is known.
a) The annual interest rate is 2.3%;
b) The maximum age that an individual can have is 99 years;
c)The mortality force is :
0.020, for x=50;
0.025, for 50=x<55
0.035, for x=55
In addition:
1.Benefits will be paid at the time death occurs;
2.The individual is protected for the first 10 years in force, and in the event of death will pay a benefit of 200;
If the individual survives 10 years from the date of the policy, but dies within the next 5 years, a death benefit equivalent to 250 will be paid;
If the individual survives to age 55, a sum of 100 will be paid, and if the individual dies within the next few years from this date, a continuously increasing life insurance benefit will be paid.
Obtain E(Z) and interpret your results.
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