A 4-year annual level premium special endowment insurance is issued to a life aged (40). If death occurs in the 1st or 2nd year, a death benefit of 800 is payable at the end of the year of death. If death occurs in the 3rd or 4th year, a death benefit of 1000 is payable at the end of the year of death. If the life survives 4 years, 1200 is payable 4 years after the issuance of the policy. You are given:

(i) q40 = q41 = 0.08, q42 = q43 = 0.10 (ii) i = 6%

Calculate

(a) the benefit premium

(b) the benefit reserve at the end of year 2

(c) Var(2L|K40 2)