CT5 - Increasing endowment assurance

[Bharti Singla]

Hii all
Please anyone tell me, Is the formula attached below correct?

If yes, can we use this for increasing endowment assurance, like this :
(P-Q)Ax:n + Q(IA)x:n
where (IA)x:n = (IA)¹x:n + n Ax:n¹ ?

P is the initial sum assured and Q is annual simple bonus and bonus vest at the end of each year.
(I used this in a question and I'm not getting the correct answer).

Pls anyone reply asap.
Thank you.

 

[Michael Hosking]

This formula won't give you the correct answer, since it only gives you a total of n-1 bonuses on survival.

Try adding on Q times Dx+n over Dx (one extra survival bonus). This should give you the correct answer.

Michael Hosking

 

[Bharti Singla]

Thank you sir. Got it now.