ACTSC232 Lecture Notes - Life Insurance, Random Variable, Novella

• School: University of Waterloo
• Department: Actuarial Science
• Course: ACTSC232
• Professor: Jun Cai

Document Summary

Summary of lecture notes - actsc 232, winter 2010. A life insurance on (x) is a contract or policy issued by an insurer to a life currently aged: the insurer will pay bene ts to the bene ciaries of (x) in the future. The payment times of the bene ts are contingent on the death time of (x). Such bene ts are called death bene ts or life bene ts. Generally speaking, a life insurance on (x) is called a continuous life insurance if bene ts are payable at the moment of the death of (x). A life insurance is called a discrete life insurance if bene ts are payable at the end of the death year of (x). Review of the expectations of the functions of tx and kx: for a function g, E[g(tx)] = g(t)fx(t)dt = g(t) tpx x+tdt and. E[g(kx)] = g(k) pr{kx = k} = g(k) kpx qx+k. (cid:90) .