4. Life Contingencies

Life Tables — Quiz

Test your understanding of life tables with 5 practice questions.

Practice Questions

Question 1

Given a life table, if the force of mortality, $\mu_x$, is constant over the interval $(x, x+1)$, which of the following expressions for the probability of survival, $p_x$, is correct?

Question 2

Consider a select and ultimate life table. If an individual is aged 40 and has just been underwritten, which notation would represent the probability that this individual dies within the next year, assuming a 5-year select period?

Question 3

A life insurance company is designing a 10-year term life insurance product for individuals aged 30. Which specific column from a standard life table would be most crucial for calculating the probability that a policyholder dies within the 10-year term?

Question 4

If $l_x$ is the number of lives at exact age $x$, and the survival probability for $n$ years for a person aged $x$ is denoted by $_np_x$, which of the following is the correct expression for $_np_x$?

Question 5

A pension fund is evaluating the solvency of its long-term liabilities. Which type of life table would provide the most accurate projection of future mortality experience for its current members, assuming the fund wants to account for improvements in mortality over time?