Use this calculator to understand the defining first-year treatment of full preliminary term valuation. The first valuation premium funds one-year term insurance, leaving a zero terminal reserve for survivors, and renewal valuation begins afterward.^[1]

The initial premium is set equal to the discounted expected first-year death claim. After premium accumulation and claims, the fund per survivor is therefore zero. Under the tool's constant renewal mortality assumption, the renewal net premium simplifies to discounted mortality times benefit.

This is a teaching implementation, not a complete statutory reserve calculation. It excludes age-varying mortality, expenses, policy values, deficiency reserves, minimum standards, product-specific benefits, and jurisdictional rules.

Use the Fackler reserve step to inspect general year-by-year reserve recursion. For actual valuation, apply the prescribed mortality, interest, expense, and modified reserve rules for the contract and jurisdiction.