1.Consider a 20-year term insurance issued to (50) from which a death benefit of1000 is paid at the time of death. The benefit premium is paid quarterly as long as the insured is alive without exceeding 20 years. You are given that the annual premium is 40, and annual effective interest ratei= 5%. Assume the survival model follows SSSM and UDD within each age interval.

(a). Describe two different approaches that you can use to calculate the policy value at time 19.3.

(b). Use the approaches described in part (a) to determine the policy value at time 19.3 and comment on whether you expect to get the same numerical results.