Hi everyone
I seem to understand the difference that the other one is independent when there is only one decrement and the other when there are multiple decrements at play. When can these be assumed to be equal? For example in a pricing situation where you have potential death or surrender at play. Can I just assume they are equal and will this be correct? As I am assuming surrender has no impact on death but death has impact on surrender. Please assist and clarity areas where I might be getting it wrong.
I seem to understand the difference that the other one is independent when there is only one decrement and the other when there are multiple decrements at play. When can these be assumed to be equal? For example in a pricing situation where you have potential death or surrender at play. Can I just assume they are equal and will this be correct? As I am assuming surrender has no impact on death but death has impact on surrender. Please assist and clarity areas where I might be getting it wrong.