When we calculate additional insurance need using human life value method, why we use annuity due rather than ordinary annuity?
For the same reason rent is due on the 1st of the month instead of the last of the month.
my understanding is dividends are Rec’d at the end of the month (END mode) and Premiums are paid at beginning of the month (BGN mode).
what i would like more clarity on: what is the human value life method? seems like one of those things that isnt in schweser. Schweser just has the net surrender cost index and the other method ( i forget the name).
Annuity due is more conservative (higher number) than immediate annuity. 