CISC 121 Lecture Notes - Lecture 4: Life Insurance
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CISC 121 Full Course Notes
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A x : n = (i/d) a x : n + n e x. In practice, life insurance is almost always continuous and death benefits are paid as soon as possible. The simplifications that make continuous insurance easy to calculate, though, are unrealistic. Fortunately, simple relations exist between the two types of insurance as long as the uniform distribution of deaths (udd) is assumed at fractional ages: A x = (i/d) a x a x : n = (i/d) a x : n . In a few of the sections above i have included recursive relationships for life insurance apv"s. Here i will present some more general formulae that you should find useful: Nsp x = nsp x : n + ne x (nsp x + n) A x = a x : n + n e x (a x + n) A x: n = a x : m + (a x+m : n-m ) (