Bharti Singla
Senior Member
Hi all
Could anyone please explain why it is written here that it is not the definition of ax ?
If we wish to see the expected benefit we have to pay under whole life annuity contract to a life aged x now, we need to take all possible cases of how many years he/she will survive and do its expectation.
That is Summation of (benefit × prob. of surviving for that period).
And this is what done here.
Then why it is not the definition of ax?
Thanks
Could anyone please explain why it is written here that it is not the definition of ax ?
If we wish to see the expected benefit we have to pay under whole life annuity contract to a life aged x now, we need to take all possible cases of how many years he/she will survive and do its expectation.
That is Summation of (benefit × prob. of surviving for that period).
And this is what done here.
Then why it is not the definition of ax?
Thanks