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.
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
