The numerical on page 10 calculates surrender value where the assurance calculation is done using a multiple of 1.02. Can you please help in understanding where this multiple of 1.02 is coming from?
Hi Muskan The sum assured is paid immediately on death. so we need to bring the payments forward by on average half a year (as the A function assumes benefits payable at the end of the year). We could do this by multiplying by 1.04^0.5 which is approximately 1.02. Best wishes Mark
