Two life insurance policies, each with a death benefit of 10, 000 and a one-time premium

of 500, are sold to a couple, one for each person. The policies will expire at the end of the

tenth year. The probability that only the wife will survive at least ten years is 0.025, the

probability that only the husband will survive at least ten years is 0.01, and the probability

that both of them will survive at least ten years is 0.96. What is the expected excess of

premiums over claims, given that the husband survives at least ten years?

I have looked at the solutions and wondered where in the question that says that couples won't get a dime from the insurance company if both of them survive at least 10 years? And they never use the 0.025 in the answer this can throw one off balance.

of 500, are sold to a couple, one for each person. The policies will expire at the end of the

tenth year. The probability that only the wife will survive at least ten years is 0.025, the

probability that only the husband will survive at least ten years is 0.01, and the probability

that both of them will survive at least ten years is 0.96. What is the expected excess of

premiums over claims, given that the husband survives at least ten years?

I have looked at the solutions and wondered where in the question that says that couples won't get a dime from the insurance company if both of them survive at least 10 years? And they never use the 0.025 in the answer this can throw one off balance.

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