Hi all I have a doubt regarding two different approaches for calculating the EPV of term assurance contracts.These are : Term assurance = Endowment assurance - Pure endowment assurance Term assurance = Whole life ass. - Deferred Whole life ass. I thought that both of these are equal. But, when trying in questions, I'm getting a slight different answers. Why they are different? Although the difference is not so singificant , but I want to know why the difference arise? Can we use either of them ? Thanks
Both methods are equivalent, and should give the correct answer. I suspect any differences will be due to rounding errors, arising because of the limited accuracy of the figures in the Tables. Michael Hosking
