TERM INSURANCE

Term insurance in its various forms is wholly dedicated to the protection need. Generally, there are no cash values whatever in term insurance and hence no possibility of the savings need being met. Term insurance, thus, is designed entirely for death protection and to create an estate only in the event of premature death.

Uses :	It is suitable for insuring any need for protection which is not of lifelong duration.
	It is also widely used by young people whose needs for protection are greater than they can presently afford through purchase of higher premium types of insurance.

(II) N-year Term (N-YT): benefit is payable if death occurs with N-year; otherwise, no benefit.(covered for N-years)

For N -YT

Example:

Find an expression in terms of , and of the actuarial present values of benefit for :

a temporary 3-year insurance of $100,000 payable at the end of the year of death issued to a person aged 20;

SOLUTION: