Special Case 1. \(n\)-year Endowment Policy

Insurance benefits payable at the moment of failure and premiums payable at the beginning of the year. In this case, the policy value at duration (k) is
begin{eqnarray*}
_k V &=& bar{A}_{x+k:overline{n-k|}} –
P(bar{A}_{x:overline{n|}}) ddot{a}_{x+k:overline{n-k|}} .
end{eqnarray*}
To evaluate this, under UDD we have
begin{eqnarray*}
bar{A}_{x+k:overline{n-k|}} &=&
bar{A}_{x+k:overline{n-k|}}^{~~1}
+A_{x+k:overline{n-k|}}^{~~~~~~1} \
&=& frac{i}{delta} A_{x+k:overline{n-k|}}^{~~1}
+A_{x+k:overline{n-k|}}^{~~~~~~1}
end{eqnarray*}
and
begin{eqnarray*}
P(bar{A}_{x:overline{n|}})
=frac{bar{A}_{x:overline{n|}}}{ddot{a}_{x:overline{n|}}}
&=&
frac{frac{i}{delta} A_{x:overline{n|}}^{1}
+A_{x:overline{n|}}^{~~1} }{ddot{a}_{x:overline{n|}}}\
&=& frac{i}{delta}P_{x:overline{n|}}^{1}
+P_{x:overline{n|}}^{~~1} .
end{eqnarray*}
This yields
begin{eqnarray*}
_k V &=& frac{i}{delta} A_{x+k:overline{n-k|}}^{~~1}
+A_{x+k:overline{n-k|}}^{~~~~~~1} – left(
frac{i}{delta}P_{x:overline{n|}}^{1} +P_{x:overline{n|}}^{~~1}
right) ddot{a}_{x+k:overline{n-k|}} \
&=& frac{i}{delta} ~_k V_{x:overline{n|}}^{1} + ~_k
V_{x:overline{n|}}^{~~1},
end{eqnarray*}
where (~_k V_{x:overline{n|}}^{1}) is the policy value at duration (k) of an (n)-year term policy and (~_k V_{x:overline{n|}}^{~~1}) is the policy value at duration (k) of an (n)-year pure endowment policy.

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