Consider a 35-year term insurance issued to a life aged 35 with annual premiums, with sum insured $700,000 payable at the end of the year of death.

Write down an expression for the future loss random variable. i=5%

Because of the difficulty in writing math, K stands for K₃₅ the kurtate life function for a person aged 35.

	a.	L=700000 (1.05)-(K+1)-P (1.05/.05) [ 1 - (1.05)-(K+1) ]
	b.	L=700000 (1.05)-(K+1) I[K<35]- P (1.05/.05) [ 1 - (1.05)-min(K+1, 35) ]
	c.	L=700000 (1.05)-min(35,K+1)-P (1.05/.05) [ 1 - (1.05)-min(K+1, 35) ]
	d.	L=700000 (1.05)-K-P (1.05/.05) [ 1 - (1.05)-K ]