A life insurance company issues 20-year term assurance policies to lives aged 30 exact. For each policy, the initial sum assured is 60,000 which increases by 30,000 at the start of the 10th policy year. The sum assured is payable immediately on death. Level monthly premiums are payable in advance throughout the term of these policies or until earlier death. The company uses the following basis for calculating premiums and reserves: Mortality: AM95 Select Interest: 5% per annum Initial commission: 40% of the total premium payable in the first policy year Initial expenses: 250 at policy commencement date Renewal commission: 3% of each premium from the start of the second policy year Renewal expenses 60 per annum, inflating at 5% per annum compound, at the start of the second and subsequent policy years (the renewal expense quoted is at outset and the increases due to inflation start immediately) Claim expense: 200 on death

Calculate the monthly premium for the policy. (16 marks)