Hi all I have come acrossed a question in which the benefits are payable as an annuity in arrear. But nothing is mentioned about premium part. In the solution they have calculated prospective reserve by considering the benefit only. Should we assume a single premium payable in advance in that case, if nothing mentioned? Thanks.
Also you won't get a situation in which an annuity benefit is currently in payment and the policyholder pays a future regular premium at the same time. The arrangement does not make practical sense and it doesn't exist.
