Hi Mark,
I was just wondering if i could query this equation -
[Single premium - initial expenses] x (1+i) - First month annuity payment] / (1-q(x+1))]
why wouldn't the equation be -
[Single premium - initial expenses] x (1+i) - First month annuity payment*(1-q(x+1))] / (1-q(x+1))]
or written another way
Single premium - initial expenses] x (1+i) - First month annuity payment*(1-q(x+1)) +AS*q(x+1)
which would mean that the asset share is equal to the single premium minus initial expenses - payment made at the end of the year + the asset share released at the end of year on policyholders who die minus the annuity payment these dead policyholders didn't receive.
Does this make sense or am i way off the mark?
Last edited: Mar 23, 2022