Hi,
Please could someone answer my query. Thank You
Mortality Option for TA:-
The course says that "As take up of the mortality option increases so the Cost of the option increases". Why is this?
I would think that as take up rate increases the cost decreases because
volume of policies increases and per-policy expenses decrease. So option cost decreases.
Also as take up increases, so the average mortality of lives tends to the average policyholder buying the product which is likley less than the one sbuying the option, so option cost decrease as less likelihood of claim.
Guarantee question I've already answered for myself.
Last edited: Aug 15, 2023