A 20-year endowment insurance issued to a life aged 40 has level premiums payable continuously throughout the term. The sum insured of this policy is 60000 payable at the moment of death or alive at the expiration of the contract. The premium is calculated based on the net premium policy value basis: Survival model: Standard Select Survival Model Interest: i = 0.05 per year eective

(a). Describe two dierent approaches that you can use to calculate the policy value at time 19.3. Note that you need to clearly state the assumptions/conditions you will use for each approach. (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.