Example 15.8:

A life insurance company has an individual surplus reinsurance agreement with retention limit R1000 000. It issues a life assurance policy to Marcio for the sum assured of R2000 000 increasing at a rate of 10% p.a. In the solution the sum assured of R2000 000 is used as the EML. My question is about whether the sum assured in this case really is the EML. I would have thought that if Marcio's age was mentioned in the question then the EML should be R2000 000 *(1.1)^(expected curtate future lifetime of a life aged x). (x being Marcio's current age). Is this idea correct?