S
scarlets
Member
OK, can I please check I am understanding this properly now...
Say a bonus of 100 is declared at t= 10. Policy matures t = 20.
It's a 90/10 policyholder/shareholder split.
Shareholder gets 10 transferred at t = 10, policyholder gets 90 at maturity t = 20.
Discounting 10 over 10 years compared to 90 over 20 years means the PV of bonuses is not a 90/10 but may be 87/13? Thanks.
Say a bonus of 100 is declared at t= 10. Policy matures t = 20.
It's a 90/10 policyholder/shareholder split.
Shareholder gets 10 transferred at t = 10, policyholder gets 90 at maturity t = 20.
Discounting 10 over 10 years compared to 90 over 20 years means the PV of bonuses is not a 90/10 but may be 87/13? Thanks.