Hi All, Could anyone tell me for which assurance contract (Whole Life, Pure Endowment, Term Assurance and Endowment) the premium would be higher? The assumptions (like SA, Term, Age, Sex...) are same across all the 4 assurance contracts. I'd be grateful if you could also give the reason. Thanks in advance!!!
Better for your understanding if you try to work it out yourself. Think about the benefits (so ignore expenses and investment income etc). As a starting point: Term assurance only gives you a benefit if you happen to die within a certain time. So it's very cheap. p.s. Whole Life doesn't have a term (unless you're thinking about limited premium payment term?)
You could also try doing some calculations based on the values in the tables to see which of the contracts gave the highest expected present value of benefits. That contract would also have the highest premium.
