G
Gract
Member
I am little bit confused with the premium equations so any help would be appreciated.
Expenses and premiums are quite clear so I will focus on the rest of the terms.
(i) Simple bonuses
The endowment term \[9,800A_{40:\require{enclose}{\enclose{actuarial}{20}}}\] should provide 9,800 in case of death or if the life survives at the end of the 20 years. So you need also to add 4,200 to get the correct maturity benefit.
However the increasing term shouldn't be for 19 years rather than 20? I.e. \[{(IA)}^1_{[40]:\require{enclose}{\enclose{actuarial}{19}}}\] ? Is this because the increasing term will pay nothing if the insured survives to year 20?
(ii) Compound bonuses
Probably similar to the above, why do we need to add the benefit amount on maturity?
Thanks!
Expenses and premiums are quite clear so I will focus on the rest of the terms.
(i) Simple bonuses
The endowment term \[9,800A_{40:\require{enclose}{\enclose{actuarial}{20}}}\] should provide 9,800 in case of death or if the life survives at the end of the 20 years. So you need also to add 4,200 to get the correct maturity benefit.
However the increasing term shouldn't be for 19 years rather than 20? I.e. \[{(IA)}^1_{[40]:\require{enclose}{\enclose{actuarial}{19}}}\] ? Is this because the increasing term will pay nothing if the insured survives to year 20?
(ii) Compound bonuses
Probably similar to the above, why do we need to add the benefit amount on maturity?
Thanks!