T
tatos
Member
A simple example was provided in chapter 35 on page 11 for calculating the reserve for a death in service benefit for someone aged 30.
Feel like I must have forgotten some CT5 stuff:
They've taken the expected present value of the benefits to be paid following the possible death of the policyholder in each year from age 30 up to retirement.
But why isn't there a survival probability factored in? For example, the policyholder can die this year between 30 and 31. Or he can die between 31 and 32, or 32 and 33 and so on.. but he must necessarily have survived from 30 to 31 first surely, or from 30 to 32 and so on.. So why isn't there a survival probability of 1_p_30 to multiply with the probability of dying between 31 and 32 (1_q_31)? and so on and so forth for all the following years in which he can die..?
Feel like I must have forgotten some CT5 stuff:
They've taken the expected present value of the benefits to be paid following the possible death of the policyholder in each year from age 30 up to retirement.
But why isn't there a survival probability factored in? For example, the policyholder can die this year between 30 and 31. Or he can die between 31 and 32, or 32 and 33 and so on.. but he must necessarily have survived from 30 to 31 first surely, or from 30 to 32 and so on.. So why isn't there a survival probability of 1_p_30 to multiply with the probability of dying between 31 and 32 (1_q_31)? and so on and so forth for all the following years in which he can die..?
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