Chapter 20 CMP 2017

[Lindsay Smitherman]

hi lindsay,

In the same section, last paragraph, does it means to say that the factor (Death benefit/maturity benefit minus Asset Share) *q(x) is not included in asset share calculation ?
Can you please help me in understanding this paragraph ?

thanks a lot

Please could you specify exactly which chapter, section and paragraph you are referring to, ideally quoting the sentence that you are asking about? Thanks.

 

[gruhaa]

Please could you specify exactly which chapter, section and paragraph you are referring to, ideally quoting the sentence that you are asking about? Thanks.

chapter 20, section 3, page 5, last paragraph

 

[Lindsay Smitherman]

Thank you for clarifying.
The additional cost of {death benefits in excess of asset share} is charged to asset share - this is included as "cost of life cover" in the bullet point list at the end of that section.
However, any difference between maturity amount and asset share is not charged to asset share - as stated in the Core Reading, this falls to (or is picked up by) the estate, as it would normally comprise only smoothing (payable to/from the smoothing account) and the impact of any guarantees biting.

 

[gruhaa]

than

Thank you for clarifying.
The additional cost of {death benefits in excess of asset share} is charged to asset share - this is included as "cost of life cover" in the bullet point list at the end of that section.
However, any difference between maturity amount and asset share is not charged to asset share - as stated in the Core Reading, this falls to (or is picked up by) the estate, as it would normally comprise only smoothing (payable to/from the smoothing account) and the impact of any guarantees biting.

thanks lindsay