An insurance company charges a 21-year-old male a premium of $500 for a one-year $ 100 comma 000 life insurance policy. a 21-year-old male has a 0.999 probability of living for a year. a. from the perspective of a 21-year-old male (or his estate), what are the values of the two different outcomes? the value if he lives is nothing dollars. the value if he dies is nothing dollars. b. what is the expected value for a 21-year-old male who buys the insurance? the expected value is nothing dollars. c. what would be the cost of the insurance if the company just breaks even (in the long run with many such policies), instead of making a profit? nothing dollars d. given that the expected value is negative (so the insurance company can make a profit), why should a 21-year-old male or anyone else purchase life insurance? a person who buys a one-year policy will expect to make a profit. insuring the financial security of loved ones compensates for the negative expected value.