ACTSC331 Chapter Notes -Whole Life Insurance, Life Annuity, Interest Rate Risk

• School: University of Waterloo
• Department: Actuarial Science
• Course: ACTSC331
• Professor: Zhenyu Cui

Document Summary

1. 3 annuities - same idea as insurance . 2. 3 advanced topic: asset shares and analysis of surplus . 2. 4 advanced topics: contracts where bene t is a% of tv . 3. 4 premiums a policy values in msm . 4. 2 premiums and policy value in mdm . This part of notes is in the study note for mlc. Insurance btx = bene t payable if the life dies at time tx. Z = present value random var = pv of any payments on a contract. Z depends on tx or kx or k(m) x where kx = (cid:98)tx(cid:99) and k(m) x = 1 m(cid:98)mtx(cid:99) For insurance, we always have a max of one payment, such as, for bene ts payable on death: z = vtx = e tx for whole life. 0 something depends on the contract if tx < n if tx n for a deferred contract by rst principle (e[z] =(cid:80) zp (z = z) =(cid:82) vt.